Bangladesh Finance Minister Mustafa Kamal has warned developing countries taking loans through China’s important project Belt and Road Initiative. He has said that China should think twice before taking a loan because Beijing’s bad credit decisions have put some countries in debt crisis.
Kamal Mustafa also warned Beijing to follow a more robust process for valuing its debts, saying such bad loans put pressure on debt-ridden emerging markets. He said that a project needs a thorough study before lending it. The Bangladeshi Finance Minister made these important comments in an interview to the Financial Times.
Referring to the BRI, he said, “Looking at the situation in the world, everyone would be thinking twice to agree to this project.” He said, everyone is blaming China and China cannot disagree with it. This is their responsibility.
China gave 4 billion dollar loan to Bangladesh:
Although Bangladesh is also a participant in China’s BRI, Dhaka currently owes Beijing about $4 billion, or six percent of its total external debt. Amazing remarks came when Chinese Foreign Minister Wang Yi visited Bangladesh over the weekend for a meeting with officials, including Prime Minister Sheikh Hasina. Not only this, China also describes itself as Bangladesh’s most reliable long-term strategic partner.
No Sri Lanka-like situation of having foreign reserves: Nasrul
Amid fierce protests against skyrocketing fuel prices in Bangladesh, the Bangladeshi government has said the situation in Dhaka will not be the same as that of Sri Lanka, as the country has huge foreign exchange reserves. Bangladesh’s Minister of Power, Energy and Mineral Resources Nasrul Hamid said, “There is no such strong public outrage against the government in Bangladesh. He said that we have sufficient stock of petroleum products till December 2022.
The post China loan policy: Bangladeshi Finance Minister Mustafa said – think twice before taking loan from China appeared first on Spotlight 7.
source https://spotlight7.com/world/china-loan-policy-bangladeshi-finance-minister-mustafa-said-think-twice-before-taking-loan-from-china/
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