Dhaka/Beijing, Jan 21 (Representative) China has agreed in principle to Bangladesh’s request to extend the loan repayment period by another decade, and also assured it will look into Dhaka’s request for lowering the interest rate to 1%, following talks between Bangladesh Foreign Adviser Touhid Hossain and Chinese Foreign Minister Wang Yi in Beijing.China is Bangladesh’s fourth-largest lender after Japan, the World Bank and the Asian Development Bank, with the total loans disbursed since 1975 coming to $7.5 billion. The talks to ease Bangladesh’s foreign debt repayment were held at the Diaoyuitai State Guest House in Beijing. At the meeting, Hossain requested bringing down the interest rate on Chinese loans from 2-3 percent to 1 percent, waiver of commitment and management fees and extension of the loan repayment period from 20 years to 30 years for both the preferential buyer’s credit loans and government concessional loans, Daily Star reported. Wang agreed to extend the maturity period by 10 years, and assured of looking into the request of lowering the interest rate, according to a statement from the Bangladesh foreign ministry. Wang praised Bangladesh’s good track record in loan repayment. China places Bangladesh at a very important position in her neighbourhood diplomacy, the statement said quoting Wang as saying.
Also today, Hossain held a meeting with Luo Zhaohui, the chairman of the China International Development Cooperation Agency, about Chinese loans. Hossain requested Luo to ramp up concessional loans and grants and the number of projects. Luo responded positively and requested Bangladesh to provide a list of priority projects. Luo said China may consider larger projects in Bangladesh in future, some portion of which will be given as grants. As a result, this will bring down the average interest rate of Chinese loans, he said. Both sides also discussed the financing of projects in metro rail and the Southern Infrastructure Development Initiative (SIDI) in Bangladesh. At Hossain’s bilateral meeting with the Chinese foreign minister, Beijing assured of continued duty-free and quota-free access to Bangladeshi products for three years after graduation from the least-developed country bracket in 2026. Wang also conveyed China’s decision to designate three to four recognised hospitals in Kunming for treatment of Bangladeshi patients. He also welcomed Bangladesh’s proposal of establishing a specialised tertiary-level Chinese hospital in Dhaka as a gesture of goodwill on the occasion of the 50th anniversary of Bangladesh-China diplomatic relations. Both sides conveyed their readiness to organise a host of activities to celebrate the 50th anniversary of the diplomatic relations. Wang requested Bangladesh to consider joining Chinese President Xi Jinping’s three global initiatives: the Global Development Initiative, the Global Security Initiative and the Global Civilisation Initiative. Wang reaffirmed that China respects the sovereignty and territorial integrity of Bangladesh and reiterated continued Chinese support for the stability, reforms, democratic transition and development initiatives of Bangladesh. The two sides emphasised continued cooperation under the Belt and Road Initiative.
The two sides expressed their willingness to work closely on proposed Chinese-funded projects namely the Dasherkandi sewage treatment plant, the upgradation and modernisation of Mongla Port and establishing digital connectivity and 4G expansion. The Chinese side was very positive about the request for lowering the interest rate and financial support, an official of the foreign adviser’s delegation told the correspondent from Beijing. Bangladesh sought detailed information on China’s plan to build a mega-hydropower dam across the Yarlung Tsangpo River in Tibet. The Chinese side said they would not consume or withdraw any water and thus the lower riparian countries will not be affected, the official said, adding that there was no discussion on the Teesta river management project. Both leaders discussed the Rohingya crisis and reaffirmed their shared commitment to work on a roadmap to finding a durable solution to the issue, according to the foreign ministry statement. Wang reassured China’s continued engagement with Myanmar to address the situation and promote regional stability. Hossain reiterated Bangladesh’s firm commitment to the ‘One China Principle’ and unwavering support for UNGA Resolution 2758. The two countries signed the implementation plan of the memorandum of understanding on the exchange of hydrological information sharing of the Yaluzangbu-Jamuna River.