China’s envoy hopeful of soon resolving interest rate discord over $7.48 billion loans to Bangladesh

Chinese Ambassador in Dhaka Ma Mingqiang has said the interest rate discord that stalled the release of $7.48 billion loans to Bangladesh will be resolved soon.

He seeks a “win-win cooperation” for mutual benefit.

“There will be a solution,” he said while delivering a lecture on ‘Booming Chinese economy, prospects for Bangladesh’ at the Bangladesh Institute of International and Strategic Studies (BIISS) on Thursday.

Bangladesh has been bargaining with China for a 1.5 percent interest rate on the promised loan that will be used for infrastructure development.

China has offered to cut down the interest rate to two percent from three percent on these long-term loans.

The ambassador said with the two percent interest rate the loan was “still attractive” for Bangladesh.

He said compared with other countries, Chinese companies would cost 10 percent to 20 percent lower and the construction time would be shorter.

“So this two percent (interest rate) is worthwhile,” he said.

“But we know Bangladesh’s concern and we are working on that and we believe there will be a solution,” he said.

The BIISS organised the lecture marking the 66th founding anniversary of the People’s Republic of China (PRC) with its Board of Governors Chairman Munshi Faiz Ahmad in chair.

The PRC was founded in 1949 after the Communist Party defeated the nationalist Kuomintang.

The ambassador said China made “remarkable progress on all fronts” over the last 66 years.

When China initiated reform and opening to the world beyond in 1978, its per capita GDP was only $224, the second lowest among all countries.

China’s per capita GDP has increased 34 times to touch $7,500 today.

China is now the second largest economy, the biggest trade partner of more than 120 countries.

As the economy is under strain now, Ambassador Mingqiang said there was nothing to be pessimistic about Chinese economy as “this is somehow controlled”.

“This is only a problem in the course of progress,” he said, adding that, “the fundamentals of economic stability have not changed”.

“China has maintained a medium-high growth rate and its restructuring and upgrading drive continues to make progress.”

As this year also marks the 40 years of Dhaka-Beijing diplomatic ties, Mingqiang also spoke on the bilateral relations.

He said “the relationship is moving forward on all fronts with a strong momentum”.

“I have all the reason to believe that the bilateral relations will gain strength from time to time and bring more tangible benefit not only to our two countries but also to the region and the world as whole.”

He was optimistic about the progress of implementing the BCIM economic corridor with Bangladesh, India and Myanmar and said this would bring much benefit to Bangladesh due to its strategic location.