Think twice before taking loans through China’s BRI: Bangladesh FM
The developing countries must think twice about taking more loans through China’s Belt and Road Initiative, Bangladesh FM warns On Tuesday.
Bangladesh Finance Minister AHM Mustafa Kamal warned about China’s Belt and Road Initiative (BRI) as global inflation and slowing growth add to the strains on indebted emerging markets.
He also said China needed to be more rigorous in evaluating its loans amid concern that poor lending decisions risked pushing countries into debt distress.
Pointing to Sri Lanka, where Chinese-backed infrastructure projects that failed to generate returns had exacerbated a severe economic crisis, the finance minister said, “Whatever the situation [that] is going on worldwide, everybody will be thinking twice to agreeing to this project (BRI).”
He further said that Everybody is blaming China. China cannot disagree. It’s their responsibility.
Recently, Bangladesh has approached the IMF for financing as surging commodity prices after Russia’s full-scale invasion of Ukraine weighed on its foreign reserves.
He also added that Bangladesh is also seeking up to $4 billion more in total from a range of other multilateral and bilateral lenders, including the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and Japan International Cooperation Agency.
Recently, Bangladesh denies Chinese built-Pakistani guided missile frigate PNS Taimur to make a port call at Dhaka
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