Tue Jan 21 19:34:24 UTC 2025: ## Bangladesh Seeks Easier Loan Terms from China Amidst Growing Cooperation

**Dhaka, Bangladesh –** Bangladesh has formally requested that China lower interest rates and extend repayment periods on its loans, according to a statement released by the Bangladeshi Ministry of Foreign Affairs. The request was made during a visit by Bangladeshi Foreign Affairs Adviser Touhid Hossein to China this week, where he met with Chinese Foreign Minister Wang Yi.

Bangladesh is seeking a reduction in interest rates from 2-3% to 1%, a waiver of commitment fees, and an extension of loan repayment periods from 20 to 30 years for both Preferential Buyer’s Credit (PBC) and Government Concessional Loans (GCL).

The two countries reaffirmed their commitment to continued cooperation under the Belt and Road Initiative (BRI), and discussed several Chinese-funded projects, including the Dasherkandi Sewage Treatment Plant, the Mongla Port upgrade, and the expansion of digital connectivity. They also signed a memorandum of understanding (MoU) on sharing hydrological information regarding the Yarlung Tsangpo River (Brahmaputra/Jamuna/Meghna).

China expressed its support for Bangladesh’s sovereignty and territorial integrity, and offered to designate 3-4 hospitals in Kunming for the treatment of Bangladeshi patients. Positive responses were also given to Bangladeshi requests for assistance in railway development, education, agriculture, water resource management, livestock, fisheries, shipbreaking, and sustainable energy. Further, China voiced support for the interim Bangladeshi government’s reform program.

The visit comes amidst increasing cooperation between China and Bangladesh, and follows China’s announcement of plans to build a mega-dam on the Yarlung Tsangpo River. The two nations also discussed plans to celebrate the 50th anniversary of their bilateral relations and the ongoing Rohingya crisis. Mr. Hossein’s visit is the first by a Bangladeshi official to China since the interim government took power in August.

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