Bangladesh gave Sri Lanka one more year to repay the loan

The 200 million loan given to Sri Lanka, which is in dire straits, is unlikely to be repaid. In this situation, Bangladesh Bank has extended the loan period by one more year. An official present at the meeting confirmed that the decision was taken at the board meeting of Bangladesh Bank on Sunday (May 8).

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At the same meeting, the central bank rejected the application of the private Eastern Bank (EBL) for waiver of fines for providing loans beyond the legal limit.

The meeting was chaired by Governor Fazle Kabir and was attended by directors of Bangladesh Bank, Deputy Governors and Executive Directors of the concerned departments.

A senior central bank official who was present at the meeting said there was no point in pressuring Sri Lanka to repay the কোটি 200 million loan. The loan repayment period has been extended for another tenier (year). Due to this decision, the country will have one more year to repay the loan of 200 million dollars taken from Bangladesh.

Under the bilateral (government guaranteed) currency swap agreement between Bangladesh Bank and the Central Bank of Sri Lanka, দেশ 200 million has been released in three phases in favor of the country. The contract has a three-month currency swap but can be extended up to one year. As a result, the term of the loan will be extended up to one year for three consecutive months. However, Bangladesh will get 1.5 percent interest with London interbank offer rate or Liber. The interest rate and loan repayment time will be calculated from the time the money is released.

Earlier, in the first phase, on 19 August 2021, Bangladesh Bank released 50 million dollars. ৩০ 100 million was paid in the second phase on October 30 of the same year and the remaining কোটি 50 million was given to Sri Lanka last November. The amount of loan given to the country is 200 million dollars or 1,624 crore rupees in Bangladeshi currency. The term will be calculated from the day the money is released. As a result, under the existing agreement, the country will have to repay the money with interest between August, October and November 2022. However, according to the new decision, one more year will be added to the previous period.

Meanwhile, Bangladesh Bank fined Eastern Bank Tk 5 lakh on April 3 for giving extra loan beyond the limit. He was asked to pay the fine within 14 days. If the payment is not made, it will be deducted from the bank’s account, the central bank said in a letter. However, they did not pay the fine and applied for remission. The application was rejected at today’s meeting.

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