Yunus urges China to reduce interest rates
Dhaka has reiterated its call for reducing interest rates for Chinese loans from 3 percent to 1-2 percent, while also seeking a waiver on commitment fees for Chinese-funded projects.
The call was made yesterday during Chief Adviser Muhammad Yunus's bilateral meeting with Chinese Executive Vice-Premier Ding Xuexiang on the sidelines of the Boao Forum for Asia Annual Conference in Hainan.
For all latest news, follow The Daily Star's Google News channel. In yesterday's meeting, Ding said his country would fund modernisation efforts of the Mongla Port and the Dasherkandi Sewage project and assured Chinese funding to purchase four ocean-going vessels for Dhaka's state-run Bangladesh Shipping Corporation.
In a separate meeting with China's Export-Import Bank Chairman Chen Huaiyu, Bangladeshi officials sought quick disbursement of Exim Bank's funding and support in new infrastructure projects such as the Dasherkandi Sewage plant.
They also urged the bank to reduce its commitment fees, which raise project costs.
Chen said his bank would look into the proposals, but also urged Bangladesh to consider taking on more concessionary loans in renminbi, the Chinese currency.
Bangladesh had made similar requests when Foreign Adviser Touhid Hossain held a bilateral meeting with his Chinese counterpart Wang Yi in Beijing in January.
During that visit, Beijing had agreed in principle to extend the repayment period for Chinese loans and assured of looking into the request to lower the interest rate.
Asked if China has taken action towards this end, Foreign Secretary Jashim Uddin said on Tuesday said that there might be an announcement on the matter after Yunus's bilateral meeting with Chinese President Xi Jinping on Friday.
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 $7.5 billion.
During yesterday's meeting with Chinese Executive Vice-Premier Ding Xuexiang, Yunus sought Chinese support in an array of development and livelihood projects while offering a site for possible relocation of Chinese manufacturing industries.
He reiterated Bangladesh's firm commitment to the One-China policy and said Dhaka takes pride in being the first South Asian country to join China's Belt and Road Initiative.
The two leaders agreed to deepen the bilateral relationship between Bangladesh and China, with Beijing saying it would extend full support to the interim government of Bangladesh.
They also agreed to boost investment, trade and cultural ties and people-to-people exchanges as they mark 50 years since the establishment of their diplomatic relationships.
"President Xi Jinping attaches tremendous importance to your visit," Ding said, adding that China hopes Bangladesh would prosper and grow under the leadership of Yunus.
He said Beijing will extend duty-free and quota-free access to Bangladeshi goods to China until 2028, two years after Bangladesh graduates from the least-developed country bracket to a middle-income economy. Beijing is also keen to start free trade negotiations with Dhaka, he said.
China last year signed a protocol to import mango from Bangladesh. The mango export would begin this summer. Beijing would also import jackfruit, guava and other aquatic products from Bangladesh in its attempt to minimise trade imbalance, he said.
Bilateral trade stands at $25 billion at present, but Bangladesh's exports to China are less than $1 billion.
Ding said the Chinese government and its universities would grant more scholarships to Bangladeshi students.
He said Beijing would foster dialogue between Bangladesh and Myanmar in an effort to resolve the Rohingya crisis.
Meanwhile, China's EXIM Bank Chairman Chen said his bank would support the relocation of Chinese manufacturing plants to Bangladesh to use the country as a platform for export to other nations.
Bangladesh's strategic location and its human resources can transform the country into a manufacturing hub for top global companies both from China and elsewhere in the world, Yunus told Chen.
He said the Bangladesh government would offer attractive benefits for the manufacturers and provide a trade corridor for the Chinese companies.
"Bangladesh can be complementary to China as far as manufacturing is concerned," Yunus said, adding that the interim government is fast-tracking the construction of a Chinese Special Economic Zone in the Chattogram region.
The country is also building large new ports to serve not only its economy but also the landlocked countries of Nepal and Bhutan and India's seven northeastern states.
Chen said Bangladesh is perfectly located to serve both southeastern and far east Asia and also the Middle East and Western Asia.
More and more Chinese companies are going global, and his bank would support their investment in Bangladesh and "develop manufacturing" in the country.
The bank would also support building infrastructure in Bangladesh to support the country's socio-economic and sustainable growth.
Chen said Bangladesh needs to improve its business environment to woo investors from China.
Foreign Adviser Touhid Hossain; Energy, Rail and Road Transport Adviser Fouzul Kabir Khan; High Representative of the Chief Adviser Khalilur Rahman; and BIDA Executive Chairman Ashiq Chowdhury were present during the meeting.
Yunus also held meetings with former UN Secretary-General Ban Ki-moon; Wu Xiaoling, former vice president of the Central Bank of China; and Alexei Overchuk, deputy prime minister of Russia.
He sought support and advice from Ban Ki-moon for a smooth transition to democracy in Bangladesh.
Ban Ki-moon said Bangladesh progressed a lot but should have done better politically and democratically.
Yunus said Bangladesh recently settled a long-pending land issue with the Korean EPZ in Chattogram, hoping that it would encourage more Korean business people to invest in Bangladesh.
BIDA Chairman Ashik Chowdhury informed the meeting that Kihak Sung would lead a 26-member strong business delegation from Korea in the upcoming Investment Summit in Dhaka.
He also met China Civil Engineering Construction Corporation President Chen Sichang and discussed a potential second Chinese economic zone in Mongla of Bagerhat and potential collaboration to employ Bangladeshi workers across the globe in CCECC-run projects.
During his meeting with FAO Director-General Qu Dongyu, Yunus urged him to act as a matchmaker between Chinese importers and Bangladesh farm and fruit producers.
"We need support in fruit processing and vegetable preservation, storage and packaging. You can connect China with our farmers and exporters," Yunus said.
In response, Qu said FAO would take up a new project to export Bangladeshi farm products to China.
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