IN a first-ever move, the government is allowing the use of €524.56 million forex reserve of Bangladesh Bank (BB), now all time high at 44.10 billion, for funding its development projects. The first such loan will be used for dredging a channel of Payra port, the third sea port now being built in the Bay of Bengal. Bangladesh Bank will give the loan to Sonali Bank at one per cent interest and Bangladesh Infrastructure Development Fund will disburse it to Payra Port authorities at 2 per cent interest.
As per the initial government decision, annual investment target from forex reserve will be no more than U$ 2 billion. The logic behind the decision is that instead of repeatedly borrowing from international lenders, the government can now finance major infrastructure building with our own money mostly earned by the hard labour of our workers abroad.
What appear quite surprising is the sudden decision and the way the government has taken the decision. We would say Bangladesh Bank and its reserve is not the personal property of the men in power. They have already destroyed state owned banks. The men in power jointly with crooks have laundered millions of dollar abroad through conduit of banks. We can’t rule out similar mishandling of the reserve fund.
The government feels free not to discuss serious public issues openly and publicly. We wonder why such a sensitive issue was not made open for discussion in a public forum, without keeping it an exclusive right of the government. We don’t have a functional Parliament and effective opposition parties to demand a meaningful discussion. We don’t know how the fund will be protected on return to the central bank. A mid-level committee of Bangladesh Bank silently submitted a draft report on possible use of the reserve to BB’s Governor just few days back suggesting that government projects may get loan from the forex reserve. Apparently it said what the government wanted. No independent judgment.
Meanwhile several private business groups have already sought loan from the reserve. We don’t know what would come next. Many see it as a last ditch effort to take money of the country for private gain.
