Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation

[Black_cats]

Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation​

Source: Xinhua| 2022-02-06 00:11:18|

Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation

Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation-

www.xinhuanet.com

DHAKA, Feb. 5 (Xinhua) -- Bangladeshi Foreign Minister AK Abdul Momen has brushed aside the claim that his country is falling into a Chinese "debt trap".

China's loans to Bangladesh only comprise a small fraction of the country's external debt, said the minister while speaking to reporters after attending a program in the capital Dhaka Saturday.

He said the "debt trap concern" was an apparent bid to smear China's Belt and Road Initiative and deter the cooperation between China and Bangladesh or other countries in the region and beyond.

"You have to have 40 percent loan if you want to get into a debt trap," said the minister, referring to the debt-to-GDP ratio. "Bangladesh's total debt is just over 15 percent or about 16 percent."

Momen said Bangladesh so far borrowed the most from the World Bank, the Asian Development Bank and the International Monetary Fund. "The Chinese loan is not even about 5 percent of our total amount of borrowing money from foreign sources," he said.

Meanwhile, he said Bangladesh has become an "eyesore" for some due to the country's geopolitical significance. "The issue of human rights is not the real purpose, the real purpose is to see whether they can reap some benefits from creating pressure on us," he noted.

Momen had earlier slammed the U.S. sanctions on officials of the country's Rapid Action Battalion (RAB) over alleged rights abuse, saying the move was "very unfortunate" and "not fact-based". ■

 

[F-6 enthusiast]

Momen said Bangladesh so far borrowed the most from the World Bank, the Asian Development Bank and the International Monetary Fund. "The Chinese loan is not even about 5 percent of our total amount of borrowing money from foreign sources," he said.

Some people are making fake claims of Chinese debt trap in BD (we all know who) . the truth is that most of the debt we have we owe to ADB , IMF , WB , Japan etc @Shotgunner51

 

[Leishangthem]

 

[bdslph]

its just a MYTH
its bad for business for WEST
they are losing a lot of money

 

[UKBengali]

if India and the US think that BD will ever break relations from China with their propaganda, then they are living in a fool's world.

India is incompetent and the USA is on the other side of the world.

China is a just an hour's plane flight from BD and has immense influnce over next door Myanmar and poised to become an all-spectrum superpower in 10-15 years time.

BD national interest must involve good relations with all major powers in the world.

 

[KampfAlwin]

I don't why but the West 'warning' Bangladesh of a 'Chinese debt trap' is just so infantilizing, as if Bangladesh is unable to make her own decisions.

 

[bluesky]

"You have to have 40 percent loan if you want to get into a debt trap," said the minister, referring to the debt-to-GDP ratio. "Bangladesh's total debt is just over 15 percent or about 16 percent."

I just do not understand this theory of 40% loan from China to cause a debt trap. The important point is not the percentage of debt to China but the total volume of debts incurred to all the debtors.

If a country is able to repay its debt with interest every year to all its debtor countries, then no problem arises. But, out of four parties, say, A, B, C, and D, the country pays back to A, B and C, but is unable to pay to only D, it is a default.

I wish that the party D is not China. By tradition, Chinese people are not generous and are money hungry. It has both good and bad points in their own society. But, China will not blink an eyelid to get back its money.

It has happened to SL and it may happen to a few African countries where there are a tremendous amount of mineral resources. It may also happen to Bangladesh.

BD should stop borrowing in two hands. The generations next will suffer to repay these loans with which the GoB has been building many prestige projects that will not return any money.

This is what SL had done so that Colombo has become beautiful but the country's economy has been hollowed out.

 

[BlindEagle]

Debt trap narrative started from india if I recollect correctly.
It’s not china’s fault people mismanage their money

 

[MajesticPug]

Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation​

Source: Xinhua| 2022-02-06 00:11:18|

Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation

Bangladeshi FM rejects "debt trap" claim on China-Bangladesh cooperation-

www.xinhuanet.com

DHAKA, Feb. 5 (Xinhua) -- Bangladeshi Foreign Minister AK Abdul Momen has brushed aside the claim that his country is falling into a Chinese "debt trap".

.. Watch out Bangladeshi. Washington will try to COLOR change your government following failure (I sure hope so) in Pakistan.

 

[denel]

I just do not understand this theory of 40% loan from China to cause a debt trap. The important point is not the percentage of debt to China but the total volume of debts incurred to all the debtors.

If a country is able to repay its debt with interest every year to all its debtor countries, then no problem arises. But, out four parties, say, A, B, C, and D, the country pays back to A, B and C, but is unable to pay to only D, it is default.

I wish that the party D is not China. By tradition, Chinese people are not generous and are money hungry. It has both good and bad points in their own society. But, China will not blink an eyelid to get back its money.

It has happened to SL and it may happen to a few African countries where there are a tremendous amount of mineral resources. It may also happen to Bangladesh.

The country should stop borrowing in two hands. The generations next will suffer to repay these loans with which the GoB has been building many prestige projects that will not return any money.

This is what SL had done so that Colombo has become beautiful but the country's economy has been hollowed out.

It is a two way street. Opportunity to do business but not one sided. One complaints we have heard was many contract documents in our continent were not even in English; many leaders were so stupid to be signing on something they did not know and took their word for.

Bottom line: It must be made on fairness and hard bargaining with proper feasibility study for return on investments. Bangladesh tends to buck the trend for making sure they get what they want correctly. Plus they have good economy as well.

Like my grand mother used to say... put the kilim that is properly sized to your needs. Alas.... our elders words of wisdoms are not heeded. Let us remember our grand mother's lessons people..... we will do better in life.

 

[Splurgenxs]

To be fair , every debt is a trap , if taken on from a position of financial weakness, or there is ambiguity in terms and conditions or one doesn't understand what they are signing.
In both cases i don't see it to be an issue , so wont be a trap.

Debt is a good thing as long as one know how to deleverage.

 

[Wergeland]

I just do not understand this theory of 40% loan from China to cause a debt trap. The important point is not the percentage of debt to China but the total volume of debts incurred to all the debtors.

If a country is able to repay its debt with interest every year to all its debtor countries, then no problem arises. But, out four parties, say, A, B, C, and D, the country pays back to A, B and C, but is unable to pay to only D, it is default.

I wish that the party D is not China. By tradition, Chinese people are not generous and are money hungry. It has both good and bad points in their own society. But, China will not blink an eyelid to get back its money.

It has happened to SL and it may happen to a few African countries where there are a tremendous amount of mineral resources. It may also happen to Bangladesh.

The country should stop borrowing in two hands. The generations next will suffer to repay these loans with which the GoB has been building many prestige projects that will not return any money.

This is what SL had done so that Colombo has become beautiful but the country's economy has been hollowed out.

When someone offer money with interests ,its upto each nation to decide if they want to take that money or not. Mismanaged economy cannot be blamed on loan providers. The bureaucracy and political leadership are the real the responsible entities.

 

[Leishangthem]

I just do not understand this theory of 40% loan from China to cause a debt trap. The important point is not the percentage of debt to China but the total volume of debts incurred to all the debtors.

If a country is able to repay its debt with interest every year to all its debtor countries, then no problem arises. But, out four parties, say, A, B, C, and D, the country pays back to A, B and C, but is unable to pay to only D, it is default.

I wish that the party D is not China. By tradition, Chinese people are not generous and are money hungry. It has both good and bad points in their own society. But, China will not blink an eyelid to get back its money.

It has happened to SL and it may happen to a few African countries where there are a tremendous amount of mineral resources. It may also happen to Bangladesh.

The country should stop borrowing in two hands. The generations next will suffer to repay these loans with which the GoB has been building many prestige projects that will not return any money.

This is what SL had done so that Colombo has become beautiful but the country's economy has been hollowed out.

why didn't BD build itself up without any borrowing if BD was better off without it?

In SL ,China paid 1.1 billion $ for 70% stake on a port that's struggling under SL control,clearly you don't even know that. SL get to have 30% stake and 1.1b $ while China bust balls trying to salvage a struggling port.

 

[bluesky]

why didn't BD build itself up without any borrowing if BD was better off without it?

In SL ,China paid 1.1 billion $ for 70% stake on a port that's struggling under SL control,clearly you don't even know that,. SL get to have 30% stake and 1.1b $ while China bust balls trying to salvage a struggling port.

I did not know that there is a big PUNDIT in this forum who can claim he knows everything and others do not know. Most welcome.

It is a two way street. Opportunity to do business but not one sided. One complaints we have heard was many contract documents in our continent were not even in English; many leaders were so stupid to be signing on something they did not know and took their word for.

Bottom line: It must be made on fairness and hard bargaining with proper feasibility study for return on investments. Bangladesh tends to buck the trend for making sure they get what they want correctly. Plus they have good economy as well.

Like my grand mother used to say... put the kilim that is properly sized to your needs. Alas.... our elders words of wisdoms are not heeded. Let us remember our grand mother's lessons people..... we will do better in life.

Another post that says you like to beat about the bushes. Please be objective when you write.