North India Statesman
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China took a big decision for Bangladesh: Bangladesh and China are growing closer amid the dispute with India over Sheikh Hasina’s extradition. On Monday, Bangladesh Foreign Minister Tauhid Hussain visited China, where he met Chinese Foreign Minister Wang Yi. During this tour, the Xi Jinping government of China has taken a decision to provide major relief to the interim government of Mohammad Yunus of Bangladesh.
According to the decision of the Chinese government, the period for repayment of loans given to Bangladesh has been extended. China’s Xi Jinping government has given Bangladesh a moratorium of 30 years instead of 20 years to repay the loan. On the other hand, the Chinese government has also promised to try to reduce interest rates on loans. Along with this, in this meeting both the countries have also expressed their commitment towards China’s ambitious Belt and Road Initiative (BRI) plan. The Foreign Ministry of Bangladesh has also issued an official statement in this regard.
Bangladesh’s official statement
“Tawheed Hussain requested China to reduce the interest rate on loans from 2-3 per cent to 1%, waive the commitment fee and extend the loan repayment period from 20 years to 30 years,” the statement said. Given our good past record of loan repayment, China accepted our request to extend the tenure and also promised to make efforts to reduce the interest rate.’
Foreign Minister said this during his meeting with Tauheed Hussain
During the meeting with the Bangladesh Foreign Minister, Chinese Foreign Minister Wang Yi said, ‘We want to continue our support for the economic and social development of Bangladesh. China will always support Bangladesh in maintaining its national independence, sovereignty and national dignity. Along with this, we will find such a path of development which will be in the interest of Bangladesh according to the current situation.
The Chinese Foreign Minister further said that the Chinese government will work with Bangladesh to maintain traditional friendship, strengthen strategic dialogue, deepen practical cooperation and jointly carry out a number of development projects, including the Belt and Road Initiative (BRI) plan. Wants to do.
China’s huge debt to Bangladesh!
Let us tell you that Bangladesh has taken loan from China for development projects under PBC and GCL agreement. According to the agreement so far, Bangladesh had 20 years to repay it and also had a grace period of 5 years. The interest rate on the loan given by China to Bangladesh under the GCL agreement is 2% and the interest rate on the loan given under the PBC agreement is 3%. According to the Economic Relations Division (ERD), China owes Bangladesh $5.57 trillion. This is 9 percent of the total debt of Bangladesh. Along with this, China is the fourth country which has given the highest loan to Bangladesh so far.
Tension in India-Bangladesh relations regarding Sheikh Hasina
On one hand, the Mohammad Yunus government of Bangladesh is getting closer to the neighboring country China, while on the other hand, relations with India are gradually deteriorating. This bitterness is especially regarding the extradition of former Prime Minister Sheikh Hasina. Sheikh Haasi had fled to India due to the rebellion in August last year. He had resigned from the post of Prime Minister. Bangladesh had expressed strong objection to Sheikh Hasina’s escape to India. There is a continuous demand from Bangladesh to send Sheikh Hasina back. However, the Indian government has not yet officially responded to Bangladesh’s demand. On the other hand, Sheikh Hasina’s visa has also been extended, allowing her to stay in India for some more time.
