Bangladesh borrows $1.6 billion from Islamic development Bank

Reuters, Sunday 19 Dec 2010

The Bangladesh oil imports in 2011 were boosted by a loan worth $ 1.6 billion provided by the Islamic development Bank

The Islamic development bank agreed to lend Bangladesh $ 1.6 billion for the importation of oil in 2011, said senior official according to Reuters.  The loan was approved after long negotiations with officials in Bangladesh like the governor of the central bank of Bangladesh, said Anwar El kareem Chairman ofBangladesh Petroleum public corporation, which is the only importer and distributer in the country.

The loan initially requested by the corporation was $ 2 billion to purchase 5 million ton of cotton products, Anwar added. In addition to a loan requested form the Bangladesh government itself worth $ 357 million to meet its monetary obligations.

“We will need loans amounts to $ 1.2 billion to acquire oil” the senior official said.

The Islamic bank has offered loan worth $ 1.2 billion with an interest rate equal to 5.5 per cent. The oil imports in Bangladesh will rise up to 14 per cent reaching 5 million ton in 2011, which will be used to operated new electricity power stations.

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