The government has recently implemented new measures to alleviate the burden of foreign debt payments. The payment of Russian loans for the Rooppur nuclear power plant project is set to be postponed for two years, with Russia having already responded favorably to Bangladesh’s proposal. This deferral could save the government approximately USD 800 million, according to sources at the Economic Relations Division (ERD).
Officials have indicated that the ERD is in the process of revising the previous loan agreements, with a draft already prepared and sent to the Ministry of Science and Technology and other relevant ministries.
Simultaneously, the government has decided to withdraw from a plan to secure USD 5 billion in loans from China, which would have been received in Chinese yuan, due to changes in the political landscape.
ERD sources revealed that the government seeks to delay the loan repayments for the Rooppur nuclear power plant project, citing ongoing economic pressures caused by the Covid-19 pandemic and the situation in Ukraine. Additionally, a decision has been made to thoroughly evaluate any future bilateral loans from China in light of the current political climate. ERD officials confirmed they had received these directives from policymakers.
Salim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), stated that while there is still significant pressure to make foreign debt payments, postponing the repayment of loans for the Rooppur nuclear power plant is a positive step. He suggested that similar negotiations should be initiated for other projects and recommended forming a high-level committee to address this issue.
