Forex reserves may come under stress without quality lending
Experts say projects financed by reserves should be monitored properly
The country s ballooning foreign exchange reserves may come under stress if the infrastructure projects to be bankrolled by the excess external capital are not monitored properly, experts warn.
They expressed the fears after the government formed the Bangladesh Infrastructure Development Fund (BIDF) on March 15 to lend money from the reserves.
The government decided to disburse Tk 5,417 crore (525 million Euros) in foreign currency loans to dredge a channel for Payra Port, a seaport in Kalapara, Patuakhali.
A tripartite loan agreement was signed between the finance division, the Payra Port Authority and state-run Sonali Bank to finance the project.
In a move unprecedented in Bangladesh's economic history, the government has decided to use 524.56 million euros (Tk 5,417 crore) from the foreign exchange (forex) reserves for the dredging of a channel for Payra Port in Patuakhali, as part of a plan to use the reserves for high-priority development projects. This is the first project to be bankrolled from the Bangladesh
PM launches Bangladesh Infrastructure Development Fund
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DHAKA, March 15, 2021 (BSS) – Prime Minister Sheikh Hasina today inaugurated Bangladesh Infrastructure Development Fund (BIDF) aiming to finance different development projects from the country’s own fund.
The BIDF that formed taking funds from the foreign exchange reserves began its journey through financing to the capital and maintenance dredging in Ramnabad Channel of the Paira Port.
To this end, a tripartite agreement between the Finance Division, Paira Port Authority and Sonali Bank was signed today at the Finance Division.
BIDF is the first such its kind in South Asia as well as in the world which would finance the development activities.
Staff Correspondent,
bdnews24.com
Published: 15 Mar 2021 07:58 PM BdST
Updated: 15 Mar 2021 07:58 PM BdST
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The prime minister made the remark while speaking via videoconferencing at an inauguration ceremony of Bangladesh Infrastructure Development Fund or BIDF and a three-way loan agreement signing to finance the dredging of a channel for the Payra port in southern Bangladesh through the fund on Monday.
“Development will only happen when people recognise the country, come to know about it, can love the people of the country and think about what is essential to move the country forward,” Hasina said.
Staff Correspondent,
bdnews24.com
Published: 15 Mar 2021 04:51 PM BdST
Updated: 15 Mar 2021 10:25 PM BdST
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Prime Minister Sheikh Hasina launched the fund, known as Bangladesh Infrastructure Development Fund, via video conferencing from the Ganabhaban on Monday.
The first project to be financed through BIDF is the dredging of a channel for the Payra port in southern Bangladesh. A three-way loan agreement was signed for the project in Dhaka.
Hasina said: “As a developing country, we will have to finance our own projects. We will develop our country. That is our goal. And a lot of work needs to be done to accomplish that.”