Bangladesh becomes a lender for first time

[mb444]

A $35 billion export and $18 billion remittances is a very very large sum of money that is not used to industrialize but to import foreign consumer goods.

And then borrow money from foreign sources to build prestigious infrastructures. গরীবের ঘোড়ারোগ।

BD needs to reverse the policy. It should spend much of its money to extend loans to the private sector to industrialize the country and thus provide jobs for the youth.

The $35bn export earning belongs to the industrialists and the $18bn remitences belong to the families who receive the remitence. These are not funds available to the government to do anything with.

Importation of foreign goods are not lead by government, they merely set import tax policies to maximise tax revenue and provide support and cover for local industry. There is massive misunderstanding on your part on basic economics.

Government borrows money for infrastructural projects because the GOB earning is fairly low from taxations. Remitence and export earning let me reiterate are not governments money to spend and invest as it will.

 

[SpaceMan18]

A $35 billion export and $18 billion remittances is a very very large sum of money that is not used to industrialize but to import foreign consumer goods.

And then borrow money from foreign sources to build prestigious infrastructures. গরীবের ঘোড়ারোগ।

BD needs to reverse the policy. It should spend much of its money to extend loans to the private sector to industrialize the country and thus provide jobs for the youth.

Lmao I WISH , BD leaders rather steal that money and invest it in the West than to actually invest it in home grown companies.

We would have already become like Taiwan or even South Korea or at least like Malaysia if leaders actually gave any dam about Bangladesh.

There's something about Bangladeshis , WHY TF ARE THEY SO DAM CORRUPT like do they want to be laughed at by East Asians and or White people ?

 

[mb444]

As far as I know, an Investment has risks. It may lose the money completely but a loan is different. The borrower has to pay it back.

So, which is the truth in this case?

There is always the possibility that srilanka will default so investment/loans are all the same....you pass your money to someone else with an expectation of getting a return....there is always a risk you wont.

 

[Destranator]

As far as I know, an Investment has risks. It may lose the money completely but a loan is different. The borrower has to pay it back.

So, which is the truth in this case?

We can't do anything if SL chooses not to payback. Their credit rating would suffer, that's all.

 

[mb444]

Lmao I WISH , BD leaders rather steal that money and invest it in the West than to actually invest it in home grown companies.

We would have already become like Taiwan or even South Korea or at least like Malaysia if leaders actually gave any dam about Bangladesh.

There's something about Bangladeshis , WHY TF ARE THEY SO DAM CORRUPT like do they want to be laughed at by East Asians and or White people ?

You know i hear this kind of thing all the time but facts on the ground does not bear it out.

There is massive graft in BD but i would say this is very similar to graft in major democratic countries in east asia....look at successive graft cases in malaysia, korea, thailand and indonesia.

The difference in development between bd and these countries in my opinion has more to do with proximity to western interest.

Post WW2 it was interest of west to ensure that east asia did not fall to communists so they invested and raised up these nations. BD did not matter thus did not get help to rise. Unfortunately we simply did not have human capital to do it ourself.

It is easy to blame the political establishment..... they are incompetent aholes but lets be realistic, given how few pay taxes in BD no one could have done much. We do not have petro doller, our country is geographically limited and we have a huge population.... our growth trajectory is not bad given our numerous limitations...

 

[Destranator]

The $35bn export earning belongs to the industrialists and the $18bn remitences belong to the families who receive the remitence. These are not funds available to the government to do anything with.

Importation of foreign goods are not lead by government, they merely set import tax policies policies to maximise tax revenue and provide support and cover for local industry. There is massive misunderstanding on your part on basic economics.

Government borrows money for infrastructural projects because the GOB earning is fairly low from taxations. Remitence and export earning let me reiterate are not governments money to spend and invest as it will.

^^^^This. A lot of people of assume that the forex reserve is money in the government's pocket, it is not.
When you bring foreign currency into the country through whatever formal means, Bangldesh Bank takes it away from you and in exchange issues you BDT. BB then "reserves" the foreign currency for those who want to buy some in exchange of BDT to pay import bills, repatriate income out of BD, etc..
Even in this case where the govt "lent" money to SL, they have taken in an equivalent amount in SL rupees in a currency swap arrangement. The govt can't just dish out foreign currency without exchanging it for something else.
Schooling systems worldwide need to get better at explaining basic economic concepts to people at an early age.

You know i hear this kind of thing all the time but facts on the ground does not bear it out.

There is massive graft in BD but i would say this is very similar to graft in major democratic countries in east asia....look at successive graft cases in malaysia, korea, thailand and indonesia.

The difference in development between bd and these countries in my opinion has more to do with proximity to western interest.

Post WW2 it was interest of west to ensure that east asia did not fall to communists so they invested and raised up these nations. BD did not matter thus did not get help to rise. Unfortunately we simply did not have human capital to do it ourself.

It is easy to blame the political establishment..... they are incompetent aholes but lets be realistic, given how few pay taxes in BD no one could have done much. We do not have petro doller, our country is geographically limited and we have a huge population.... our growth trajectory is not bad given our numerous limitations...

This is why we need to collaborate extensively with Western nations on economic matters. Name one properly developed country that is anti-West.

 

[F-6 enthusiast]

Bangladesh High Commissioner to Sri Lanka in 2022:
Bangladesh-Sri Lanka ties could be "severely affected" if Sri Lankans wear Thai t-shirts.

Sri Lankans should tread carefully.

DEFSECA will be awarded the contract to sell 1200 tk/t-shirt (MADE IN THAILAND btw ) to SL

This is why we need to collaborate extensively with Western nations in economic matters. Name one properly developed country that is anti-West.

the markets are there. the truth is that because of neoliberal capitalism , China and the west are essentially dependent on each other. Someone makes the goods and someone else consumes them. So all this talk about ''confrontation of civilisations'' by west and china is just posturing. Neither side is willing to risk it for whatever they hope to gain. Small nations are different tho.

Their credit rating would suffer, that's all.

then they wont get loans from other countries

 

[SpaceMan18]

You know i hear this kind of thing all the time but facts on the ground does not bear it out.

There is massive graft in BD but i would say this is very similar to graft in major democratic countries in east asia....look at successive graft cases in malaysia, korea, thailand and indonesia.

The difference in development between bd and these countries in my opinion has more to do with proximity to western interest.

Post WW2 it was interest of west to ensure that east asia did not fall to communists so they invested and raised up these nations. BD did not matter thus did not get help to rise. Unfortunately we simply did not have human capital to do it ourself.

It is easy to blame the political establishment..... they are incompetent aholes but lets be realistic, given how few pay taxes in BD no one could have done much. We do not have petro doller, our country is geographically limited and we have a huge population.... our growth trajectory is not bad given our numerous limitations...

I agree , but still that doesn't quite explain Bangladeshis nature of corruption though lol

^^^^This. A lot of people of assume that the forex reserve is money in the government's pocket, it is not.
When you bring foreign currency into the country through whatever formal means, Bangldesh Bank takes it away from you and in exchange issues you BDT. BB then "reserves" the foreign currency for those who want to buy some in exchange of BDT to pay import bills, repatriate income out of BD, etc..
Even in this case where the govt "lent" money to SL, they have taken in equivalent SL rupees in a currency swap arrangement. The govt can't just dish out foreign currency without exchanging it for something else.
Schooling systems worldwide need to get better at explaining basic economic concepts to people at an early age.

This is why we need to collaborate extensively with Western nations in economic matters. Name one properly developed country that is anti-West.

Yeah we have to work with the West but also be careful at times with certain Western nations like America who might wanna put their military interests on us.

But other than that yeah

 

[Indos]

Well Sri Lanka and India abstained.

I do not know why we lent $200 Million to Sri Lanka. Do they deserve it? I'd say no - going by their actions.

"COLOMBO: India on Thursday abstained from voting on a UN Committee’s resolution on the human rights situation in Myanmar in regard to the Rohingya Muslim minority. Among the 26 countries which abstained along with India, were Sri Lanka..."

India Abstains From Voting on UN Rohingya Resolution

Actor, UN Special Envoy Angelina Jolie denounces sexual violence against Rohingya women

www.thecitizen.in

Yeah I dont know reason behind it, but as Muslim I rather wants BD lend that money to Pakistan.

Talking about loan, Indonesia has ill feeling with IMF because they lend us money with precondition to sell many of our state owned companies and forbid government to inject money to Indonesian Aerospace despite we were at that time running two expensive program which are N 250 and N 2130.

We only sell few state owned companies despite some of them are large and very profitable like Indosat and both N 250 and N 2130 program are failed.

This is why we rush paying all of our debt to IMF when our economy alhmaduliLLAH get much better in 2008. We never ask any loan to IMF since that time despite India until Today still get loan from IMF.

---------------------------------------

Indonesia has no plan to seek IMF loan: Sri Mulyani​

Finance Minister Sri Mulyani Indrawati (JP/Anton Hermansyah)

News Desk (The Jakarta Post) Bali ● Tue, October 9, 2018


Finance Minister Sri Mulyani Indrawati has given an assurance that the Indonesian government has no plan to seek a loan from the International Monetary Fund (IMF).

“On the question of whether we will seek a loan from the IMF, I say no. The IMF is an institution that only lends to countries that face a crisis in balance of payments,” Sri Mulyani told a press conference on the sidelines of the 2018 IMF-World Bank Annual Meetings in Bali on Monday.

She explained that Indonesia got a loan from IMF during the monetary crisis in 1997 to 1998 because Indonesia faced a major deficit in its balance of payments caused by uncontrollable private sector debts that affected the whole economy.

Indonesia is in a much better state now compared to 20 years ago. “So, I assure you that we do not need a loan from the IMF. Many have tried to create the idea that [we need to borrow from the IMF],” she said.

Indonesia has no plan to seek IMF loan: Sri Mulyani

Finance Minister Sri Mulyani Indrawati has given an assurance that the Indonesian government has no plan to seek a loan from the International Monetary Fund (IMF).

www.thejakartapost.com

 

[Bengal71]

I never thought I'd see this day. Wow.

Sri Lanka has been a good neighbor and it never hurts to support a decent neighbor in need. I also think the risk is minimal and worth it. They are in danger of defaulting for now but Sri Lanka will be back one day.

Their buddist people are same as the Burmese, hate Muslims. They were kinda happy when Burmese were killing Rohingya. Allah says it clearly, "the kuffar and the mushrikeen are your manifest enemies". We see it time and again.

We just need to keep normal business ties knowing fully well they are not our well wishers, neither can they ever be our true friends.

 

[Indos]

You know i hear this kind of thing all the time but facts on the ground does not bear it out.

There is massive graft in BD but i would say this is very similar to graft in major democratic countries in east asia....look at successive graft cases in malaysia, korea, thailand and indonesia.

The difference in development between bd and these countries in my opinion has more to do with proximity to western interest.

Post WW2 it was interest of west to ensure that east asia did not fall to communists so they invested and raised up these nations. BD did not matter thus did not get help to rise. Unfortunately we simply did not have human capital to do it ourself.

It is easy to blame the political establishment..... they are incompetent aholes but lets be realistic, given how few pay taxes in BD no one could have done much. We do not have petro doller, our country is geographically limited and we have a huge population.... our growth trajectory is not bad given our numerous limitations...

No for the case for Indonesia, it is not the West, maybe it is true for Malaysia that they (The West) invest huge in Malaysia semiconductor industry that has become Malaysia main export until Today. For Indonesia case, the foreign direct investment that we got to industrialize our country and also huge loan for infrastructure are taken from Japan. South Korea later become another major investor in our industry.

USA and other Western country only has interest to invest in extracting our minerals (oil, gas, nickle, gold), even Elon Musk refuse to invest in our battery project where South Korea consortium that is the one that has shown much willingness and signed MOU with our new state owend battery company to produce EV battery supply chain (refinery, cathode factory, battery cell, battery pack factory, etc).

 

[Bengal71]

Well I take back my earlier comment as not aware that they supported the savages on Rohingya - not sure if it is a Buddhist-brotherhood thing.

It is a buddist brotherhood thing, also they hate Muslims. But we should lend them money or to anyone else as long as we can get back in principle+interest.

BD's actual problem now is one of not being able to spend the money, rather than a shortage.

Due to lack of high-quality project managers and other bottlenecks a lot of the budgeted ADP(Annual Development Plan) money simply does not get spent every year.

Yes a still poor BD should not really be lending anyone money as it itself still gets billions of dollars of soft-loans every year but 200 million US dollars is a drop in the ocean of a fast growing 350 billion US dollar economy.

It's a good idea to lend money if we can make some quick bucks. Nothing wrong giving them 200 mil for 3 months and getting paid back with 2%.

 

[Bilal9]

If India is such a friend of Sri Lanka (that nation is run by Indian policy and Indian industrial help essentially), then why couldn't India lend them the money?

And we did not add any strings either, like India always does...

Look at how India makes others do its dirty work...and gathers accolades by being a dalal.

Mark my words - Sri Lanka is in no position to pay back this loan, at least within five years.

This was a really bad move by Hasina.

Yeah I dont know reason behind it, but as Muslim I rather wants BD lend that money to Pakistan.

Talking about loan, Indonesia has ill feeling with IMF because they lend us money with precondition to sell many of our state owned companies and forbid government to inject money to Indonesian Aerospace despite we were at that time running two expensive program which are N 250 and N 2130.

We only sell few state owned companies despite some of them are large and very profitable like Indosat and both N 250 and N 2130 program are failed.

This is why we rush paying all of our debt to IMF when our economy alhmaduliLLAH get much better in 2008. We never ask any loan to IMF since that time despite India until Today still get loan from IMF.

---------------------------------------

Indonesia has no plan to seek IMF loan: Sri Mulyani​

View attachment 747857
Finance Minister Sri Mulyani Indrawati (JP/Anton Hermansyah)

News Desk (The Jakarta Post) Bali ● Tue, October 9, 2018


Finance Minister Sri Mulyani Indrawati has given an assurance that the Indonesian government has no plan to seek a loan from the International Monetary Fund (IMF).

“On the question of whether we will seek a loan from the IMF, I say no. The IMF is an institution that only lends to countries that face a crisis in balance of payments,” Sri Mulyani told a press conference on the sidelines of the 2018 IMF-World Bank Annual Meetings in Bali on Monday.

She explained that Indonesia got a loan from IMF during the monetary crisis in 1997 to 1998 because Indonesia faced a major deficit in its balance of payments caused by uncontrollable private sector debts that affected the whole economy.

Indonesia is in a much better state now compared to 20 years ago. “So, I assure you that we do not need a loan from the IMF. Many have tried to create the idea that [we need to borrow from the IMF],” she said.

Indonesia has no plan to seek IMF loan: Sri Mulyani

Finance Minister Sri Mulyani Indrawati has given an assurance that the Indonesian government has no plan to seek a loan from the International Monetary Fund (IMF).

www.thejakartapost.com

@Indos this is superb and sound financial policy by your govt.

IMF is the West's poodle to disable financial independence for Asian countries.

 

[F-6 enthusiast]

@Indos this is superb and sound financial policy by your govt.

IMF is the West's poodle to disable financial independence for Asian countries.

IMF likes to privatise state owned assets and increase the price of utilities like water ,electricity etc. look at what they did to south american countries , robbed them blind.

 

[Indos]

IMF likes to privatise state owned assets and increase the price of utilities like water ,electricity etc. look at what they did to south american countries , robbed them blind.

Yup, and that Indosat telecommunication infrastructure (they also have satellite) that is likely used by Australian to tap our President (SBY). That company is sold to Singapore state owned telecommunication.

As respond we force Singapore to sell their stake in Indosat and now it is in the hand of Qatar company. And we name two new corvettes with the name of our Army personnel who bomb Singapore many times during Soekarno anti Malaya campaign (invasion to Malaysia that in turn make us go against British/Australia/ New Zealand in Borneo (Kalimantan) island.

But we stil manage to prevent biggest telecommunication company, state owned Telkom, to be sold, despite minority stakes have been sold to stock market and srategic investor, once again, the same Singaporean company.


=====================

So it is weird when IMF ask Indonesia to privatize its state owned company where the buyer is another state owned company from Singapore but as we know Singapore is very pro West