Finance Adviser for enhanced loan deal skills with dev partners

Finance Adviser emphasizes need for govt officials skills in loan negation

Dhaka, Aug 13 - Finance and Planning Adviser Dr. Salehuddin Ahmed emphasized the need for government officials to enhance their skills in loan negotiations with development partners, highlighting that neighbouring countries have proven to be particularly adept in these areas.

Speaking to reporters after a view-exchange meeting with Economic Relations Division (ERD) officials at the ERD conference room at Sher-e-Bangla Nagar, Dhaka, the adviser underscored the importance of strengthening negotiation capabilities to safeguard national interests.

When asked about potential pressure on the government regarding loan repayments, especially for mega projects, Dr. Salehuddin acknowledged that the government is committed to meeting its repayment obligations. There’s no denying that loans must be repaid, and the government will ensure this is done, he said, adding that the country’s economic situation is stable enough to handle these repayments.

The adviser directed ERD officials to prioritize ongoing foreign-aided projects based on their effectiveness, stressing the need for transparency and accountability in their implementation. “Donors are willing to support us, but we must first conduct proper scrutiny and due diligence. It’s crucial that we protect our interests and ensure the optimal utilization of these projects,” he said.

He reiterated that Bangladesh has never defaulted on loan repayments and expressed the government’s preference for securing soft-term loans over hard-term loans to ensure they are used effectively. He also stressed the importance of enhancing coordination among executing agencies.

Dr. Salehuddin noted that Bangladesh’s debt-to-GDP ratio is relatively low compared to countries like Italy, Greece, and Sri Lanka. “Our position is relatively comfortable, but we must focus on better management and effectiveness to fulfill our commitments,” he added.

He stressed the importance of setting clear priorities before undertaking foreign-aided projects.-UNB