Bangladesh's Chief Adviser Yunus urges China to cut interest on loans

Gearing up for his meeting with President Xi Jinping, Bangladesh's Chief Adviser Muhammad Yunus on Thursday asked China to reduce interest rates for Chinese loans and waive commitment fees on Chinese-funded projects.

Yunus, who met Chinese Executive Vice Premier Ding Xuexiang on the sidelines of the Boao Forum for Asia Annual Conference in Hainan, sought Chinese support in an array of developments, Bangladesh media reports said.

He also called for a reduction of interest rates for Chinese loans from three per cent to 1-2 per cent to Bangladesh and sought a waiver of commitment fees on the Chinese-funded projects in Bangladesh.

 

China is Bangladesh's fourth-largest lender after Japan, the World Bank and the Asian Development Bank, with total loans disbursed since 1975 coming to USD 7.5 billion, according to a report in the Daily Star newspaper of Bangladesh.

Yunus, who arrived in Hainan on Wednesday on a four-day visit, is due to meet President Xi on Friday.

In his meeting with Ding, Yunus sought Beijing's help in facilitating the relocation of the Chinese manufacturing industries, including ready-made garments, electric vehicles, light machinery, high-tech electronics, chip manufacturing and the solar panel industry.

On the sidelines of the Forum, Yunus also met Russian Deputy Prime Minister Alexey Overchuk, who expressed Moscow's interest in exporting more wheat and fertiliser to Bangladesh.

"Russia would like to export more wheat and fertiliser to Bangladesh," he said.

During the meeting, the two leaders discussed the operationalisation of the Russia-funded Rooppur Nuclear Power Plant.

Yunus also met former UN Secretary-General Ban Ki-moon, who is the Chairman of the BOAO Forum, and sought support and advice for a smooth transition to democracy in Bangladesh.

"We want to start anew; we need your support and advice. We are having a great opportunity now," Yunus was quoted by the daily as saying.