Amid strained India-Bangladesh ties, China backs Dhaka, agrees to extend repayment period for…

Amid tensions between India and Bangladesh over disorders cherish the repatriation of worn High Minister Sheikh Hasina and border fencing, neighboring country China has been extending necessary beef up to Bangladesh. The connection between the two countries has been rising nearer, with China displaying solid backing for Bangladesh. Recently, Bangladesh’s Foreign Minister Touhid Hossain visited Beijing, where he met with his Chinese counterpart, Wang Yi. True through this meeting, China provided necessary reduction by agreeing to lengthen the repayment interval for Bangladesh’s loans.

Furthermore, China licensed a slice worth in hobby rates, offering great reduction to the economically struggling authorities of Mohammad Yunus in Bangladesh. In accordance with the agreements reached, President Xi Jinping’s authorities extended the loan repayment interval from two decades to 30 years. Furthermore, the Chinese authorities promised to lower the hobby rate on the loans.

In an announcement from Bangladesh, it modified into once mentioned that Foreign Minister Touhid Hossain had requested China to lower the loan hobby rates from 2-3 per cent to 1 per cent, waive the commitment price, and lengthen the repayment interval from 20 to 30 years. Fascinated by Bangladesh’s previous track legend, China licensed the quiz and warranted a slice worth in hobby rates.

True during the meeting, the Chinese Foreign Minister assured his Bangladeshi counterpart that China would proceed to beef up Bangladesh’s financial and social improvement. This gesture by China is viewed as a strategic switch to lengthen its diplomatic have an effect on. Below the Belt and Avenue Initiative (BRI), China has verbally agreed to lower hobby rates on loans and lengthen repayment sessions, while additionally assuring Bangladesh that their requests will doubtless be evaluated.

Bangladesh had taken loans from China for improvement projects below the PBC and GCL agreements. In the beginning, the repayment interval for these loans modified into once feature at two decades, with a grace interval of 5 years. The loans below the GCL agreement carried an hobby rate of 2 per cent, while those below the PBC agreement had the next rate of three per cent.

In accordance with the Economic Family members Division, Bangladesh presently owes China a perfect debt of USD 5.57 billion, which accounts for 9 per cent of Bangladesh’s total exterior debt. China ranks as the fourth-largest lender to Bangladesh. This switch aligns with China’s broader system to deepen its financial and political ties with East Asian countries, namely at a time when its relationship with India remains strained.