CHINESE ASSISTANCE

Beijing unwilling to give spl treatment

China has expressed its reluctance to entertain a proposal raised by Bangladesh to give it special treatment when providing financial assistance.
Bangladesh has requested China for special interest rates, terms for down payment of loans, and the loan mechanism, sources in the government told The Independent yesterday.
But, Beijing is unwilling to do that, they said.
However, the sources said that China has agreed to talk about lowering the interest rate, with the government, at working level.
The issue regarding the special treatment was discussed during Chinese commerce minister Gao Hucheng's visit to Bangladesh, on August 25-26.
In Dhaka, the Chinese minister had a lengthy meeting with finance minister Abul Maal Abdul Muhith. Besides, he met Prime Minister Sheikh Hasina, foreign minister Abul Hassan Mahmood Ali, and road transport and bridges minister, Obaidul Quader.
According to the sources, the Bangladesh side was told by Chinese officials that many countries receive assistance from China and offering Bangladesh special treatment will have a negative impact on other lending.
"The Chinese side, however, showed a positive attitude by agreeing to discuss our proposal to reduce the interest rate," said an official.
"The issue will be discussed between Dhaka and Beijing at the working level,” he added. Another official said, “The government requested China to increase concession in infrastructure and energy sectors, and Beijing told us that it is on the rise.”

During his meeting with finance minister Muhith, the Chinese commerce minister said that China is assisting Bangladesh in different construction projects and Chinese companies should be given the responsibility to operate those facilities, after construction is over. According to the minister, there are two benefits from this. The facilities built with Chinese assistance would be better managed and the Chinese contractors will be more careful about quality of the work.
Bangladesh is positively considering the Chinese proposal in this regard, said the sources. They also said that China also expressed its interest to invest US$350 million in the jute sector and Bangladesh has welcomed it.
“State-owned China Textiles Industry Corporation wants to invest the amount in the jute sector, for diversification, value addition, and export to different countries, including China,” said an official.
Export earnings of Bangladesh increased by 27 per cent last year, due to jute exports to China, he said.

 

CHINESE ASSISTANCE

Beijing unwilling to give spl treatment

China has expressed its reluctance to entertain a proposal raised by Bangladesh to give it special treatment when providing financial assistance. Bangladesh has requested China for special interest rates, terms for down payment of loans, and the loan mechanism, sources in the government told The Independent yesterday. But, Beijing is unwilling to do that, they said. However, the sources said that China has agreed to talk about lowering the interest rate, with the government, at working level. The issue regarding the special treatment was discussed during Chinese commerce minister Gao Huchengs visit to Bangladesh, on August 25-26. In Dhaka, the Chinese minister had a lengthy meeting with finance minister Abul Maal Abdul Muhith. Besides, he met Prime Minister Sheikh Hasina, foreign minister Abul Hassan Mahmood Ali, and road transport and bridges minister, Obaidul Quader. According to the sources, the Bangladesh side was told by Chinese officials that many countries receive assistance from China and offering Bangladesh special treatment will have a negative impact on other lending. The Chinese side, however, showed a positive attitude by agreeing to discuss our proposal to reduce the interest rate, said an official. The issue will be discussed between Dhaka and Beijing at the working level, he added. Another official said, The government requested China to increase concession in infrastructure and energy sectors, and Beijing told us that it is on the rise. During his meeting with finance minister Muhith, the Chinese commerce minister said that China is assisting Bangladesh in different construction projects and Chinese companies should be given the responsibility to operate those facilities, after construction is over. According to the minister, there are two benefits from this. The facilities built with Chinese assistance would be better managed and the Chinese contractors will be more careful about quality of the work. Bangladesh is positively considering the Chinese proposal in this regard, said the sources. They also said that China also expressed its interest to invest US$350 million in the jute sector and Bangladesh has welcomed it. State-owned China Textiles Industry Corporation wants to invest the amount in the jute sector, for diversification, value addition, and export to different countries, including China, said an official. Export earnings of Bangladesh increased by 27 per cent last year, due to jute exports to China, he said.