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Dhaka to urge IDB to double loan PDF Print E-mail
Wednesday, 28 May 2008

Bdnews24.com

Bangladesh will ask the Islamic Development Bank to double its annual loan to ease "internal pressure" for funds to finance fuel imports, said adviser AB Mirza Azizul Islam Tuesday.

After a meeting on energy at the planning ministry, the finance and planning adviser said: "I will go to Jeddah tomorrow (Wednesday) to attend the IDB annual meeting."

"IDB gives a yearly loan of $1 billion to Bangladesh for importing fuel oil. We will ask for increasing the amount to $2 billion."

Mirza Aziz also said, "The proposal will be made as the fuel prices on the international market have increased abnormally. I hope the IDB will respond positively."

Replying to a question on when fuel prices would be increased, the adviser said, "The government has not taken any decision in this regard yet. You will get to know if any decision is taken."

"If the IDB increases its annual loan for fuel imports from $1 billion to $2 billion, pressure on foreign exchange reserves will ease," he said.

The finance adviser also said the government is taking $200 million in loan from the IDB on an emergency basis.

The IDB will have to be paid a 1.75 percent interest in addition to London Inter Bank Offered Rate for the loans. The rate of interest will be more than 4 percent in all.

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