BNP's allegations
While the BNP has alleged through their senior leader Mr M.K. Anwar, that 1.75 percent interest rate for the $1 billion loan and 20 years repayment period which includes grace period of 5 [five Years] from India is very high, but in reality facts and findings about loans taken by different governments including that of the BNP for projects show that this interest rate is not high but in fact lowest so far taken on these grounds from different governments which includes Japan, China, Korea and even the USA and the UK. I am not going to dissect the deals and the agreements signed but trying to pass my concern that the view that Mr Anwar has expressed is just another of BNP”s so called bluff & Anti India stunt on which they do stand & do politics.
The loan from India is a commercial or tied loan with a 20-year repayment period having a favourable condition which allows five years grace period but the borrower has to purchase certain things from the lending country. Such conditions are not unique. Even countries like the USA or Japan had given tied loan to Bangladesh in the past but the BNP unfortunately lacked their courage to say against those for the reasons unknown.
Every year, the World Bank and the ADB offer Bangladesh several soft loans. But in such cases, Bangladesh must comply with their conditions and invariably without any say. Both these banks select the projects from an array of proposals from Bangladesh and then monitor all the progress. The availability of such loans is also restricted. Side by side, the ADB offers countries like Bangladesh commercial loans with interest rates swinging between 3 to 5 percent and sometimes adds service charge too which is less then 1.5 percent.
There is a statement from the newly elected chairman of FBBCI. He termed it one of the most successful negotiations in the history of Bangladesh regarding loan.
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