What's new

The situation in Sri Lanka, Chinese debt, Washington warned Dhaka

bluesky

ELITE MEMBER
Joined
Jun 14, 2016
Messages
16,515
Reaction score
-4
Country
Bangladesh
Location
Japan
The situation in Sri Lanka, Chinese debt, Washington warned Dhaka
Mizanur Rahman
First page 9 April 2022, Saturday | Last updated: 2:51 p.m.

The United States has urged Bangladesh to be vigilant about its rapprochement with China, citing the dynamics of Sri Lanka's economic situation. This was discussed in detail in the Dhaka-Washington Partnership Dialogue on March 20. Victoria Nuland, Under Secretary of State for Political Affairs at the State Department, who led the US delegation, cited Sri Lanka as an example. The issue of Sri Lanka's economic misery has not yet come to light in the public domain.

As friends and development partners, the US envoys told the Bangladeshi envoys that they should think twice before increasing trade and commerce with China. He noted that the economic situation in the South Asian country of Sri Lanka was not very good, adding that they had received economic assistance from China. But ‘irrational’ debt has increased their risk.

Sri Lanka is in debt today! Official sources said policymakers in Dhaka were also shaken by warnings from friendly countries and development partners, including the United States.

This is reflected in the speeches of various ministers including the Prime Minister Sheikh Hasina. The policy makers of the government claim that they are wary of foreign loans in Bangladesh.

Note that the huge debt refers to the troubled Sri Lankan economy. According to analysts, the situation in Colombo is a lot like borrowing ghee. They were show-off with 'unreasonable' development projects, and 'friends' became too dependent on China to implement mega projects!

Inflation, high unemployment and food shortages ওষুধ almost everything that is needed দিয়েছে have put Sri Lankans in a difficult position as a nation. There is no energy crisis, no shortage of power generation, no shortage of henna which is now left in Lanka. Unable to import paper, the school level examination in the country has been canceled! All in all, this is the first time since independence in 1947 that Sri Lanka has experienced such an economic downturn.

Food prices in the country are now skyrocketing. In that sense, it is possible China did not abandon them. However, it did not go as far as it had hoped. Diplomatic sources said that Bangladesh's active participation in the Indo-Pacific Strategy (IPS), a priority US project, was sought in the Dhaka-Washington formal and informal talks.

The United States invites Dhaka to take full advantage of the attractive economic package offered by IPS. Indo-Pacific Strategy (IPS) prospects have been announced and its 'Economic Framework' will be released soon.

There is no chance of remaining neutral in the Ukraine crisis: Meanwhile, the United States has called on Bangladesh to reconsider its position, citing Russia's unilateral aggression against Ukraine. Bangladesh abstained from voting on a resolution in the UN General Assembly condemning Russia for imposing war.

Dhaka then claimed that Bangladesh had maintained its neutrality by abstaining from voting on March 2 (deliberately abstaining from voting even though it was present at the polls).

The United States raised questions about Bangladesh's "neutral position" in a partnership dialogue with the United States in Dhaka on March 20. The US Under-Secretary-General said that the crisis in Ukraine had made the world face a reality in which there was no room for neutrality. Moreover, this is not the time to be neutral. Assessing the situation in Ukraine, the US envoy said it was a model of strategic competition between dictatorship and democracy.

This situation has created an uncomfortable situation in global prosperity and greater security, which is not acceptable at all. On the issue of abstaining from voting in the UN vote on the Ukraine issue, the US envoys said that Bangladesh will always be in favor of democracy - that is what is expected. Four days after that meeting,

Bangladesh dramatically voted in favor of another UN resolution (which called for humanitarian assistance to Ukraine). At that time, many people thought that the request of the United States had influenced the change of position of Bangladesh.

But three weeks later, in a UN referendum (a resolution expelling Russia from the UN Human Rights Council on April 7 for "grave human rights abuses"), Bangladesh's position changed. This time too Bangladesh abstained from voting. However, in a 93-24 vote, the much-discussed resolution on the expulsion of Russia was passed.
 
.
If the economic framework of IPS is good BD should wholeheartedly engage.

At the same time BD should maintain momentum with china.

I dont buy the china debt trap nonsense.

However BDs public borrowing is increasing, current account is in deficit... BD should not take any further loans...consolidate the gains and bed in economic development.

The world is likely to go into recession and BD should prepare for an economic downturn. Maintain reserves, increase tax revenue by aggresively pursuing black money and take harsh measures against loan defaulters.
 
.
I have read somewhere the Finance Minister talking about the total loan signed for is $97 billion. Do you guys think it is a small money?

To understand the burden, please think of the mortgage loan a person takes and how difficult it is to pay back the money in many years.

The country is facing trade deficit already which is covered with the remittances sent by our people working abroad. But, it has certain upward limit.

The GoB must think before it acts on the advices of the Party cronies who dearly want to earn two Paisas from the project money.
 
.

The news report above says the total foreign debt of Bangladesh is already over $78 billion. It is about $460 per head. I do not personally think it is healthy.


It is more unhealthy when again it is considered that the internal debt is about $108 billion. please read the news above. So, I ask people to tell how the country will pay back the loans. Printing the US dollars may be a good way.

So, instead of making BD govt understand the dire situation BD is in, the US govt may do a great job if it provides a few printing machines to Hasina Bibi and her Party cronies.
 
Last edited:
.
Screenshot_20220410_102039.jpg

The so-called Chinese debt is actually a deliberate term to sow dissension, and the Chinese debt is only 10% of Sri Lanka's total foreign debt.
Japan and Japan's Asian Development Bank is 23% of total debt.
9.9% from the World Bank
Except for two percent from India, the rest 55% are from Western financial institutions.

And the rest of the debt comes from borrowing new debt to repay old debt, which Sri Lanka doesn't actually get, and the money is immediately used to repay the previous debt.
China's debt is mainly used to build infrastructure, ports, Sri Lanka uses the rent of ports to pay loans, Sri Lanka gets new ports and infrastructure, domestic products can be easily transported to export, Sri Lanka can get real things.
 
Last edited:
.
পরের রোজগারে রাজভোগ খাওয়ার চেয়ে নিজের রোজগারের শক্ত রুটি খেয়ে কাটানোই ভালো।
 
.
SIMPLE ITS HURTING WESTERN BUSINESS THAT IS ALL
MANY COUNTRIES DECIDED NOT TO BORROW MONEY FROM USA
 
.
View attachment 832719
The so-called Chinese debt is actually a deliberate term to sow dissension, and the Chinese debt is only 10% of Sri Lanka's total foreign debt.
Japan and Japan's Asian Development Bank is 23% of total debt.
9.9% from the World Bank
Except for two percent from India, the rest 55% are from Western financial institutions.

And the rest of the debt comes from borrowing new debt to repay old debt, which Sri Lanka doesn't actually get, and the money is immediately used to repay the previous debt.
China's debt is mainly used to build infrastructure, ports, Sri Lanka uses the rent of ports to pay loans, Sri Lanka gets new ports and infrastructure, domestic products can be easily transported to export, Sri Lanka can get real things.
Doesn't matter, even Lanka just owes one cent to China, the west will still howl debt trap day and night.
 
.
The situation in Sri Lanka, Chinese debt, Washington warned Dhaka
Mizanur Rahman
First page 9 April 2022, Saturday | Last updated: 2:51 p.m.

The United States has urged Bangladesh to be vigilant about its rapprochement with China, citing the dynamics of Sri Lanka's economic situation. This was discussed in detail in the Dhaka-Washington Partnership Dialogue on March 20. Victoria Nuland, Under Secretary of State for Political Affairs at the State Department, who led the US delegation, cited Sri Lanka as an example. The issue of Sri Lanka's economic misery has not yet come to light in the public domain.

As friends and development partners, the US envoys told the Bangladeshi envoys that they should think twice before increasing trade and commerce with China. He noted that the economic situation in the South Asian country of Sri Lanka was not very good, adding that they had received economic assistance from China. But ‘irrational’ debt has increased their risk.

Sri Lanka is in debt today! Official sources said policymakers in Dhaka were also shaken by warnings from friendly countries and development partners, including the United States.

This is reflected in the speeches of various ministers including the Prime Minister Sheikh Hasina. The policy makers of the government claim that they are wary of foreign loans in Bangladesh.

Note that the huge debt refers to the troubled Sri Lankan economy. According to analysts, the situation in Colombo is a lot like borrowing ghee. They were show-off with 'unreasonable' development projects, and 'friends' became too dependent on China to implement mega projects!

Inflation, high unemployment and food shortages ওষুধ almost everything that is needed দিয়েছে have put Sri Lankans in a difficult position as a nation. There is no energy crisis, no shortage of power generation, no shortage of henna which is now left in Lanka. Unable to import paper, the school level examination in the country has been canceled! All in all, this is the first time since independence in 1947 that Sri Lanka has experienced such an economic downturn.

Food prices in the country are now skyrocketing. In that sense, it is possible China did not abandon them. However, it did not go as far as it had hoped. Diplomatic sources said that Bangladesh's active participation in the Indo-Pacific Strategy (IPS), a priority US project, was sought in the Dhaka-Washington formal and informal talks.

The United States invites Dhaka to take full advantage of the attractive economic package offered by IPS. Indo-Pacific Strategy (IPS) prospects have been announced and its 'Economic Framework' will be released soon.

There is no chance of remaining neutral in the Ukraine crisis: Meanwhile, the United States has called on Bangladesh to reconsider its position, citing Russia's unilateral aggression against Ukraine. Bangladesh abstained from voting on a resolution in the UN General Assembly condemning Russia for imposing war.

Dhaka then claimed that Bangladesh had maintained its neutrality by abstaining from voting on March 2 (deliberately abstaining from voting even though it was present at the polls).

The United States raised questions about Bangladesh's "neutral position" in a partnership dialogue with the United States in Dhaka on March 20. The US Under-Secretary-General said that the crisis in Ukraine had made the world face a reality in which there was no room for neutrality. Moreover, this is not the time to be neutral. Assessing the situation in Ukraine, the US envoy said it was a model of strategic competition between dictatorship and democracy.

This situation has created an uncomfortable situation in global prosperity and greater security, which is not acceptable at all. On the issue of abstaining from voting in the UN vote on the Ukraine issue, the US envoys said that Bangladesh will always be in favor of democracy - that is what is expected. Four days after that meeting,

Bangladesh dramatically voted in favor of another UN resolution (which called for humanitarian assistance to Ukraine). At that time, many people thought that the request of the United States had influenced the change of position of Bangladesh.

But three weeks later, in a UN referendum (a resolution expelling Russia from the UN Human Rights Council on April 7 for "grave human rights abuses"), Bangladesh's position changed. This time too Bangladesh abstained from voting. However, in a 93-24 vote, the much-discussed resolution on the expulsion of Russia was passed.

Roza Ramjaner din.

Kharap kotha koibar chaina.

Magar IPS-USA'r economic development er offer (esp. Japanese investments) jodi bhalo hoi tobe dosher kicchu dekhina.

Unnoyon dia hoilo kotha.

Chinese ra to loan dewar jonno ek paye khara - shei tulonai Japanese loan ki kom na beshi?
 
.
The world is likely to go into recession and BD should prepare for an economic downturn. Maintain reserves, increase tax revenue by aggressively pursuing black money and take harsh measures against loan defaulters.

Exactly - Financial industry watchers in the US have been saying this lately, will come in like 1Q-2023. But what I hear is that this will not be a hard crash like in 2008. More of soft belly flop and then bounce back. Those that want to invest in lower-priced real estate, be ready with some liquid cash from equity and make your moves....
 
.
Any country dumb enough to listen to usa, which is printing trillions to pay its own debt, about China debt & reject Chinese investment, then it deserves all the poverty & under-development it gets.
 
.
The so-called Chinese debt is actually a deliberate term to sow dissension, and the Chinese debt is only 10% of Sri Lanka's total foreign debt.
Japan and Japan's Asian Development Bank is 23% of total debt.
9.9% from the World Bank
Except for two percent from India, the rest 55% are from Western financial institutions.
No, it is deliberate in the case of Sri Lanka. China knew from the very beginning that SL does not need another Sea Port when a very famous Colombo Port was already there.

Instead of giving good advice to the ignorant govt of SL, it built another new port with loans from China. It was intentional and as a result SL has to give up the sovereignty of that port.

There are also many infrastructure projects built by China in BD which are not economically feasible because they will not produce wealth. So, next time I plead that China either directly invests in the industries in BD or extend industrial loans to this poor country.

Infrastructure projects look good but it may take 250 years to earn money from them for repayment. China is not sincere and broad hearted anywhere including BD and the African countries.

Any country dumb enough to listen to usa, which is printing trillions to pay its own debt, about China debt & reject Chinese investment, then it deserves all the poverty & under-development it gets.
Please write in the proper English that can be understood by an uneducated person like me.
 
.
That's very rich i am guessing of bdesh debts are western loans.
 
.
No, it is deliberate in the case of Sri Lanka. China knew from the very beginning that SL does not need another Sea Port when a very famous Colombo Port was already there.

Instead of giving good advice to the ignorant govt of SL, it built another new port with loans from China. It was intentional and as a result SL has to give up the sovereignty of that port.

There are also many infrastructure projects built by China in BD which are not economically feasible because they will not produce wealth. So, next time I plead that China either directly invests in the industries in BD or extend industrial loans to this poor country.

Infrastructure projects look good but it may take 250 years to earn money from them for repayment. China is not sincere and broad hearted anywhere including BD and the African countries.

The return on infrastructure is not simply the recovery of investment costs. Investing in infrastructure can most most directly improve people's living standards and income levels. Every person and business can enjoy the convenience of roads, bridges, and networks that bring life, production, and resources. Without infrastructure, even if you have the best factories and technicians, you will not be able to keep them alive. Infrastructure is the "most basic" facility, the most preferred option. The most basic option for investment is to invest in education in terms of people and infrastructure in terms of materials.
Infrastructure [roads, bridges, ports, airports] accelerates the flow of people and materials and reduces the cost of movement, making industrial investment possible.
Infrastructure, the investment is huge and takes a long time to recover the cost of investment, and can greatly improve a country's national power, so developed countries have avoided or even suppressed developing countries from investing in infrastructure.
I wonder how the government and people of Bangladesh view infrastructure, is it the same perception as yours?
Now that Bangladesh's neighbors are promoting infrastructure, I hope that Bangladesh will also build a lot of future-oriented infrastructure as a way to be in a good position to compete.
Our government has also been building more infrastructure in the country, not only traditional roads, bridges, ports, airports, power plants, but also future-proof infrastructure such as networks, big data, computing nodes, etc. For example, where I am now, gigabit internet is already available to households, and I have 1000 megabit broadband for only $5 (25RMB). 1 gigabit is 1,000 megabits per second (Mbps) 1,000 Mbps


This video is about how a poor, landlocked, mountainous province made a leap in GDP because of the construction of infrastructure and network infrastructure.


The relationship between Sri Lanka, Bangladesh, Pakistan and China is geopolitically determined, and no matter which government comes to power, as long as the leadership of that government still has its own national interests in mind, it is unlikely to do anything to harm bilateral relations.

Those people or institutions or scholars who hype and repeat China's debt trap are essentially serving the Western media hegemony.

The leaders of the Chinese government, unless they are all fools, will not engage in any debt trap and do anything detrimental to bilateral relations with developing countries. Not to mention countries like Bangladesh, Sri Lanka, and Pakistan that share important strategic interests with China.

At this stage, the West, India, Japan and other countries that have fundamental conflicts of interest with China will use all their capabilities to suppress and provoke China and stifle its development before it has fully grown.

China's strategy to deal with this is simple: actively expand relations with developing countries to reduce pressure and maintain its momentum while being suppressed by the dominant Western powers. This is the context in which the Belt and Road agreement was proposed.

To put it bluntly, for China, the benefits of China's bilateral relationship with Bangladesh far outweigh the benefits that the debt trap will bring to China. IIf I can understand this as an ordinary Chinese, then the Chinese government people can see it even more clearly.
 
Last edited:
.
No, it is deliberate in the case of Sri Lanka. China knew from the very beginning that SL does not need another Sea Port when a very famous Colombo Port was already there.

Instead of giving good advice to the ignorant govt of SL, it built another new port with loans from China. It was intentional and as a result SL has to give up the sovereignty of that port.

There are also many infrastructure projects built by China in BD which are not economically feasible because they will not produce wealth. So, next time I plead that China either directly invests in the industries in BD or extend industrial loans to this poor country.

Infrastructure projects look good but it may take 250 years to earn money from them for repayment. China is not sincere and broad hearted anywhere including BD and the African countries.


Please write in the proper English that can be understood by an uneducated person like me.
Blaming who lends your money for your problems is the dumbest thing one can ever imagine. Do you know China used to be the biggest borrower in the world for over 3 decades, mainly from the west, did you ever hear China blaming the west for lending us money? Can you actually force to lend money to someone if they don't want? so dumb...
 
.
Back
Top Bottom