OECD improves Bangladesh’s country risk classification

OECD improves Bangladesh’s country risk classification

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Bangladesh is an untold story”- Bangladesh Bank Governor Dr. Atiur Rahman said to the delegation of Swiss Export Credit Agency (SERV) in a meeting in Zurich on 29th June. A high level delegation from SERV, General Manager of Foreign Exchange Investment Department, Mr. A. N. M. Abul Kashem and his team from Bangladesh Bank, Herbert Wight, the Director of SERV and his team participated from the Swiss side.
At the very start of the meeting, Mr. Wight informed that OECD, which includes countries like USA, Western Europe, Scandinavia, Switzerland and Japan, has upgraded the overall country ratings of Bangladesh (5 from 6) in the classification committee meeting held on 17th June 2015 (available at: http://www.oecd.org/tad/xcred/crc.htm) .The major reason for up-gradation from country category 6 to 5 is the resilience of Bangladesh economy accompanied by high and stable economic growth for well over a decade despite political upheaval and weak external demand. Bangladesh has surpassed its neighboring countries like Pakistan (7/7), Sri Lanka (6/7), Nepal (6/7), Myanmar (6/7) and Mongolia (7/7) in the OECD country classification, and is only behind India (3/7).
Due to long spell of macroeconomic stability, Bangladesh has now become a new frontier market, shifting away from a highly development aid dependent nation.
Dr. Rahman expressed his satisfaction over the enhancement in OECD classification which should lead to significant lowering of costs for Bangladeshi entrepreneurs and banks in securing guarantees and L/C confirmations. A large pool of young population offers demographic dividend, which if properly trained, can easily be transformed into skilled labor force, eventually brining in huge foreign reserves for Bangladesh. European countries can take advantage of this up-gradation.
He further expressed hope that the upgraded classification of Bangladesh will attract substantially wider engagement of the advanced economy ECAs in lending to investment projects in Bangladesh including in infrastructure, textiles and apparel, pharmaceuticals and leather sectors.
Governor Rahman assured that Bangladesh will maintain conducive policy environment towards higher economic growth and macro-financial stability. He welcomed investors to reap the full advantage of all existing and new facilities, bringing about a major new upturn in trade and investment relationships, BB press release.

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