Bangladesh Borrowing to send economy roaring

[Destranator]

Bold part: I would like you to re-write the paragraphs. It is because your statements do not distinguish between FOREIGN DEBTS in US dollars and DOMESTIC DEBTS in Taka borrowed from the banks and from the population who are almost forced to buy national bonds because they do not see any benefits as the bank interest rates are very low and are lower than the rate of inflation.

@Bilal9

In any case, foreign borrowing that stands now at $97 billion is different from domestic borrowings.

And most people do not understand the difference between the definitions of GDP (Gross Domestic Product) and GNI (Gross National Income), and our Ahammak Finance Minister usually thinks these two are the same. He uses GNI figures which is a little greater because it includes also remittances from abroad, about $20 billion.

I understand and appreciate the difference between foreign debt, local debt and national debt.
My point was around reliability of economic numbers. When your economic numbers become unreliable, it screws up all sorts of economic modellings and forecasts.
Classic example is how the BAL government overestimated future power demand when they took charge. Inaccurate projection of economic development resulted in us signing up for excessive, idle power capacity which is costing us tonnes of money, some of which is foreign loans with interest.
One can hope that a future government reforms BBS and gives them autonomy.

 

[blueazure]

what are the interest rates in BD ?

what are the inflation numbers ?

how easy it is to set up factories in BD?

how are the corporate taxes ?

what are electricity tarriffs?

is BD safe to live ?

 

[Bengal71]

The original name for the port was the Arabic word Shaṭṭ (شط) i.e. delta, meaning the Ganges delta, Shaṭṭ Al-Ghānj (شط الغانج). Chittagong was frequented by many Arab traders in the early Mughal era and they dominated trade in that city during the Elias shahi dynasty.

Naming it Chottogram now is just a scheme to Hindu-ize the name of the city, thought up by local India-shill BJP/RSS-agent Bangladeshi Hindu political leaders. See how we tolerate our minorities?

These Chittagong Hindu leader ba$tards were number one culprits to murder Salahuddin Quader Chowdhury and his family (politically) using Hasina as proxy. Gaddars always trying to increase Indian influence in Bangladesh, which is them shooting themselves in their own feet. They should behave like a model minority, given all the privileges and tolerances they have been given. But they don't.

Chakmas (and other itinerant landless people) are illegal settlers in the hill tracts (who came from Myanmar) and are interlopers in the land (like gypsies) - they don't own property (unlike what their 'Raja' used to claim). Bangladesh govt. tolerated these people a lot for the sake of 'peace'. Chakmas use Myanmar provincial languages, don't ask me as those languages are not part of our culture or heritage. Chakmas have little say so in Political discourse in Chittagong as their numbers are minuscule (in the thousands maybe). Most Chakmas are Indian citizens and they live in Manipur and Nagaland.

Chottogram sounds so nicely Hindu, just like Gurugram. If Hasina is there one more decade, these Hindus will probably succeed in naming Bangladesh Purva-Bharat-desh. We Bangladeshis tolerate a lot!

I'd appreciate it if (as an outsider) you don't keep commenting on how we should define our culture as Bengalis and whether we should or should not call it Hindu. You are not one to decide or judge - I'm sorry. Your opinion does not count.

আচ্ছা আচ্ছা, তাই বুঝি? সাকাচৌ রাজাকার ভাল লোক ছিল আর তার বিচার করে ফাসি দেয়া অন্যায় হয়েছে? Please tell us more....

 

[bluesky]

I understand and appreciate the difference between foreign debt, local debt and national debt.

I know you understand the difference but your input does tot differentiate between foreign and domestic borrowings. This is what I was telling.

 

[Bilal9]

আচ্ছা আচ্ছা, তাই বুঝি? সাকাচৌ রাজাকার ভাল লোক ছিল আর তার বিচার করে ফাসি দেয়া অন্যায় হয়েছে? Please tell us more....

Be a patriot, even if you are Hindu. Have some shame and backbone.

Support your own country which gave you your education and livelihood, not a foreign country like India.

Pinaki Bhattacharya should be your role model.

 

[Bilal9]

what are the interest rates in BD ?

what are the inflation numbers ?

how easy it is to set up factories in BD?

how are the corporate taxes ?

what are electricity tarriffs?

is BD safe to live ?

All your answers can be found when you contact these folks in Bangladesh,

BIDA - Home

bida.gov.bd

 

[vi-va]

By talking about debt, it's worth mentioning the structure of the debt, more importantly, interest rate.

 

[Paul2]

Do not borrow — my advice.

 

[bluesky]

Do not borrow — my advice.

Borrowing makes our Hasina Bibi as well as PDF posters happy without knowing what is waiting ahead. Examples are abundant here and there, this country and that country.

However, I would support the future borrowing by the private sector from the IFC. This will help the industrialization of the country. But, the govt has borrowed too much dollar money already at the tune of $97 billion.

When matured, Bd will have to pay at the rate of 5 to 6 billion per year with interest.

 

[fallstuff]

I am not sure the justification for a Karnophuli tunnel, can someone shed some light on it.

 

[Bilal9]

I am not sure the justification for a Karnophuli tunnel, can someone shed some light on it.

Karnaphuli tunnel will be a connector for the CTG city Outer Ring Road (almost complete) to the Marine drive going all the way down to Ghumdum (Mynamar border) past Cox's Bazaar.

Since the river delta has 30,000 ton ships passing on the river surface, a Bridge would have been too costly, and probably take too long to make. Tunnel was a better and cheaper option per feasibility studies.

On the South side of the Karnaphuli delta (mouth) there is KAFCO and Various Export Zones and also Matarbari port and Various industrial areas near Cox's Bazaar. These will all be connected to the Port North of the Karnaphuli delta, to Mirsarai EPZ, EPZ's in Feni, Cumilla, Meghnaghat areas and in Dhaka (and also in points North) via this tunnel. Logistics wise, great move. Map below.

By the way, this is the first underwater river tunnel in Bangladesh, but certainly not the last.

Govt. folks are considering that they may start another tunnel under the Padma at Daulatdia and Paturia. That is still under a feasibility study....but the difficulty of the Padma Bridge (and how deep they had to pile for the footings) made certain administrators realize that a tunnel might be an easier bet....

 

[bluesky]

Govt. folks are considering that they may start another tunnel under the Padma at Daulatdia and Paturia. That is still under a feasibility study....but the difficulty of the Padma Bridge (and how deep they had to pile for the footings) made certain administrators realize that a tunnel might be an easier bet....

Give the construction works to a Japanese civil engineering company like Kajima, Ohbayashi Gumi, Taisei Corporation, Takamatsu, or some others like Fujita Kogyo.

The Chinese company stopped the piling under two Pears (Pillars) of the Padma Bridge citing 80 m depth was short of taking the imposed loads. Finally, they increased the depth to 122m.

This determination of the length of piles is done long before the first pile is placed when the DESIGN Consulting company receives the Boring Data from the soil investigation company. But, in the case of Padma Bridge, something went wrong and the construction company had to postpone piling.

I just do not know who did the mistakes. Was it the soil investigation company, design consulting company, or the Chinese construction company itself?

A Japanese big construction company will never do such a silly thing. So, any next project should be awarded to such a company. There are other methods to strengthen the load bearing capacity.

It could have been Pneumatic Caisson or blasting dynamite sticks to compress the loose silty soil.

 

[Pandora]

Nawaz Sharief and his cronies used to feed Pakistan same phudu Khata that briwing will roar our economy to new heights. It did take us to new heights only to come down crashing like a rock. IMF and World Bank will help you with borrowing and give positive review bcz they obviously are lenders and which lender will give you a bad review if you borrow on their terms. Debt driven growth is a curse and endless cycle.

 

[bluesky]

Nawaz Sharief and his cronies used to feed Pakistan same phudu Khata that briwing will roar our economy to new heights. It did take us to new heights only to come down crashing like a rock. IMF and World Bank will help you with borrowing and give positive review bcz they obviously are lenders and which lender will give you a bad review if you borrow on their terms. Debt driven growth is a curse and endless cycle.

This is exactly what I have been telling our BD people. But led by @UKBengali, they always refute my assertions though the amount of present borrowing is already $97 billion.

@UKBengali wants a bullet train at a cost of $16 billion of borrowed money and @Bilal9 asking for $6 billion credit to build another east-west connection below the Padma riverbed. They really think it is development!!

Our PDF brats will shortly know what really is IMF/ WB's positive reaction when BD will be paying $6 billion every year to these international Money Sharks.

Last year, BD paid back $1.9 billion including interest. This year, I expect the figure to be at least $2.5 billion. Today, the Loan Sharks give a positive rating to BD because our govt wants it that way.

At a time when BD is unable to pay back the money, they will change their tune. Instead of saying 6.5% growth, they will be saying 1% negative growth.

This thing has been happening throughout the world. These loan sharks lure the illiterate politicians of a developing country with cheap money and high growth forecast. This is how they stop a country from developing by itself.

Bangladesh is solidly in its trap.

 

[Pandora]

This is exactly what I have been telling our BD people. But led by @UKBengali, they always refute my assertions though the amount of present borrowing is already $97 billion.

@UKBengali wants a bullet train at a cost of $16 billion of borrowed money and @Bilal9 asking for $6 billion credit to build another east-west connection below the Padma riverbed. They really think it is development!!

Our PDF brats will shortly know what really is IMF/ WB's positive reaction when BD will be paying $6 billion every year to these international Money Sharks.

Last year, BD paid back $1.9 billion including interest. This year, I expect the figure to be at least $2.5 billion. Today, the Loan Sharks give a positive rating to BD because our govt wants it that way.

At a time when BD is unable to pay back the money, they will change their tune. Instead of saying 6.5% growth, they will be saying 1% negative growth.

This thing has been happening throughout the world. These loan sharks lure the illiterate politicians of a developing country with cheap money and high growth forecast. This is how they stop a country from developing by itself.

Bangladesh is solidly in its trap.

When you start borrowing from overseas lenders for infrastructure projects then it all goes down hill from that point. Pakistan had some good investments under Build operate transfer procedure and then some very bad investments like Orange line project and mtro bus scheme. On top of repaying debt repayment we also have to pay billions in subsidy to just operate the bloody thing.