Bangladesh needs 24 bln USD annual infrastructure spending to join middle income club: AIIB report

[bête noire]

And what is the annual budget of Bd

@Mage already replied, it's $55B.

Most will be spent to pay foreign loans

What's up chap? What's with the sudden rage? Where are you coming up with this BS figure from? Define 'most'. It's 15% of our budget. But I would very much like to know where you got this "most being spend to pay back" from.

 

[UKBengali]

Bullshit , loan (either it is soft, commercial or London standard) need to be repayed and there is annual installment of loans with their Interest cost, and this will taking proportion of your annual state budget to repay the maturity of debts.

And what is the annual budget of Bd and the realization of your budget. Most will be spent to pay foreign loans, then civil servants salary and pension, then came utility cost like paying for electricity and water bill for gov. owned enterprise and infrastructure, maintaining your infrastructure, military, healthcare, education, subsidies for oil, electricity and gas for industry and agriculture sector, i am will be surprised if Bd can allocate at least ten percentage of your state budget for expanding your infrastructure. This in line with small number of FDI or investment from your SOE or private sector in infrastructure sector unlike what happened in China, Japan, Thailand, South Korean Malaysia or Indonesia

Russia 12 billion US dollar loan for Rooppur is the only one at commercial rates and does not need any repayments till 2027. By then BD economy is expected to be at least 1 trillion US dollars in then money and government budget will hover 2-250 billion US dollars.

Chinese loans are semi-soft(2-2.5% interest) and nothing to be paid for 5 years.

Japanese loans are soft(0.1% interest) and no repayments for 10 years.

BD has time before it needs to make any repayments and will have far more resources to pay it all back. Also remember that BD external debt is by far the lowest in S Asia and so has scope to grow a little with all these loans now being taken out.

 

[Nike]

@Mage already replied, it's $55B.


What's up chap? What's with the sudden rage? Where are you coming up with this BS figure from? Define 'most'. It's 15% of our budget. But I would very much like to know where you got this "most being spend to pay back" from.

15 percentage is large sum from your total spending, your military budget just got around 5 to 10 percentage

 

[Species]

Bullshit , loan (either it is soft, commercial or London standard) need to be repayed and there is annual installment of loans with their Interest cost, and this will taking proportion of your annual state budget to repay the maturity of debts.

And what is the annual budget of Bd and the realization of your budget. Most will be spent to pay foreign loans, then civil servants salary and pension, then came utility cost like paying for electricity and water bill for gov. owned enterprise and infrastructure, maintaining your infrastructure, military, healthcare, education, subsidies for oil, electricity and gas for industry and agriculture sector, i am will be surprised if Bd can allocate at least ten percentage of your state budget for expanding your infrastructure. This in line with small number of FDI or investment from your SOE or private sector in infrastructure sector unlike what happened in China, Japan, Thailand, South Korean Malaysia or Indonesia

http://en.banglapedia.org/index.php?title=Annual_Development_Programme

^Read the article carefully. If you don't understand any word, use dictionary. Don't participate in Bangladesh's infrastructural development threads unless you comprehend the article properly, till then just just sit back and read what others discuss.

 

[Mage]

I can't follow where this convo is going

 

[bluesky]

What's up chap? What's with the sudden rage? Where are you coming up with this BS figure from? Define 'most'. It's 15% of our budget. But I would very much like to know where you got this "most being spend to pay back" from.

Do you really think that BD will borrow in dollars and will pay it back in BD Tejpattar Taka? Why people here are discussing the budget? The annual budget is in BD Taka which is not freely convertible with the international currencies like dollar or pound. Simply speaking, BD will have to pay back the money in dollars that it earns by exports.

So, it makes sense to borrow if BD export earnings rise every year by, say, $2 billion every year for the next 30 years. The excess dollars can be used to pay back the borrowed money with interest. After Rooppur the total borrowing will be at least (present $45 b + $12 b) = $57 billion. But, the way the GoB is prone to borrow instead of using its own manpower I believe it will surpass $90 billion by, say, 2023.

No country has ever developed with borrowed money from the lending agencies. Shortly, the country will start suffering unless the export volume increases. However, borrowing itself is shortsighted, should be abandoned in favor of doing the infrastructures by ourselves.

@Marine Rouge

 

[Nilgiri]

কি কতা কন ? টাহা এট্টা সমস্যা হইলো তাও মাত্র ২৪ বিলিয়ন মার্কিন ডলার পরতেক বছর? জাপানিরা তো এট্টা ছোট কপিমেশিন হইলেই এর থিকা বেশি টাকা ছাপাইয়া ফ্যালে। এই দুই নম্বরি কইরাই তো তারা উন্নতির চরম শিখরে উইঠ্যা গ্যাছে। আমরাও মেশিন ফিট কইরাই ডলার বানাইয়া ফেলুম। আর কুমার @UKBengali-রে এই কামের ম্যানেজার বানাইলে তো কোনো কথাই থাকবোনা। তার কাছে Money is no problem.

What are you talking about? It is just a problem of only 24 billion dollars in a year. The Japanese use a small copy machine to print more than this money. With this kind of 420 business, they are at the top of development. We will also set up this machine to make billions of dollars. And Kumar(i) @UKBangali will be made the manager of this dollar printing project. To him/her, "Money is no problem".

@Nilgiri

Its fine, BD world leadership in 4th Industrial revolution will solve these petty printing money issues. Don't forget Aladdin skyscraper groundwork already laid, the foundations are being poured as we speak (dozens more of such skyscrapers are soon to be made too). Myanmar has been invaded, destroyed and Arakan free state has been formed too. Walton also is now exporting 10 billion dollars just by itself surpassing 1 billion target that was made earlier by a full order of magnitude.

Everything is proceeding to plan for developed country 2041. AL "knows what its doing"....just trust them and all their SDDS prime data. LDC status was simply just a ploy to get BD RMG "industrialised"...it is now a heavily industrialised country....consuming more energy per capita than India + Pak put together. It is even beating Switzerland and Scandinavia on corruption and ease of doing business....and all health and social metrics too. BAL STRONK!

Do you really think that BD will borrow in dollars and will pay it back in BD Tejpattar Taka? Why people here are discussing the budget? The annual budget is in BD Taka which is not freely convertible with the international currencies like dollar or pound. Simply speaking, BD will have to pay back the money in dollars that it earns by exports.

So, it makes sense to borrow if BD export earnings rise every year by, say, $2 billion every year for the next 30 years. The excess dollars can be used to pay back the borrowed money with interest. After Rooppur the total borrowing will be at least (present $45 b + $12 b) = $57 billion. But, the way the GoB is prone to borrow instead of using its own manpower I believe it will surpass $90 billion by, say, 2023.

No country has ever developed with borrowed money from the lending agencies. Shortly, the country will start suffering unless the export volume increases. However, borrowing itself is shortsighted, should be abandoned in favor of doing the infrastructures by ourselves.

@Marine Rouge

Its ok BD can borrow much much more than this if it wants to (it has the best investment grade credit rating in the whole world, an industry leader!). The govt is just very fiscally prudent/responsible... so it chooses not to borrow 100s of billions even trillions of dollars each year! This govt is nothing short of a miracle....super transparent too. BD stock market will soon reach 10 trillion dollar market cap too....so there is no need for foreign borrowing at all!

Proposed budget of FU. 18-19 was 55 BN in USD. $24bn is like 43% of it. Not possible.

How much of the 55 billion will be infra spending out of interest? Is there a good sector layout pie chart somewhere?

 

[bluesky]

http://en.banglapedia.org/index.php?title=Annual_Development_Programme

^Read the article carefully. If you don't understand any word, use dictionary. Don't participate in Bangladesh's infrastructural development threads unless you comprehend the article properly, till then just just sit back and read what others discuss.

Why the hell are you bickering at @Marine Rouge when you yourself do have a comprehension problem? What she wrote in her post makes quite a sense. Consult the dictionary yourself first.

How much of the $55 billion will be infra spending out of interest? Is there a good sector layout pie chart somewhere?

In the case of BD, spending on the infrastructure is done with the borrowed dollar and not from the Budget money. I believe, the GoB should reverse the process in favor of allocation from the budget in the local currency instead of borrowing in dollars. This is how the manpower is trained and they produce/build the infrastructure year after year.

 

[Nilgiri]

In the case of BD, spending on the infrastructure is done with the borrowed dollar and not from the Budget money.

Really? If its govt spending, it has to be in the budget right? Basically a govt projects its revenues and spendings...and the shortfall is obviously borrowed (either foreign or local). If there is state level of govt (which BD does not have), same process with them at their level.

Or this infra spending (from loans) is done through private sector purely?

 

[Species]

Why the hell are you bickering at @Marine Rouge when you yourself do have a comprehension problem? What she wrote in her post makes quite a sense. Consult the dictionary yourself first.


In the case of BD, spending on the infrastructure is done with the borrowed dollar and not from the Budget money. I believe, the GoB should reverse the process in favor of allocation from the budget in the local currency instead of borrowing in dollars. This is how the manpower is trained and they produce/build the infrastructure year after year.

They were claiming there is no space for development projects in Bangladesh's budget which was quite hilarious so I showed the article defining ADP.

In the 2018-19 budget, the size of ADP was around $21 billion, about 35% of the budget. The implementation rate of ADP has hovered around 80-90% with the rate in the latest fiscal year of 2017-18 hitting about 94%.

Bangladesh's GDP growth has been largely driven by this infrastructural spending.

 

[Bilal9]

Which is happening as we speak.

You think BD will have decent infrastructure overnight?

By 2024 when this AL term ends, we shall see all cities connected by 4 lane highways, Dhaka making good progress on the road, metro and bus infrastructure that it deserves and 24/7 electricity to more than 95% of the population.

It is now apparent that few of the posters here ever visit the sticky infra thread in our sub-forum.

They can get the answers there, and I post there almost daily.

 

[Bilal9]

@Mage already replied, it's $55B.


What's up chap? What's with the sudden rage? Where are you coming up with this BS figure from? Define 'most'. It's 15% of our budget. But I would very much like to know where you got this "most being spend to pay back" from.

From what I know Bangladesh is very current in its debt servicing obligations...they are quite responsible about not over-extending themselves debt-wise.

This thread has again become the usual pointless time-waster fracas and mudslinging fest by uninvited sycophant/kuck trolls and false-flagger 'Bangladeshis' trying to steer opinion that they do not possess any right to.

The fault - genuine Bangladeshis, is yours. I have told you brothers not to tag these fake folks and to put them on 'ignore' status.

What business does a Kolkata Sanghi troll have in discussing Bangladeshi affairs using a false Bangladeshi flag? I have revealed their true identity in this very forum. It is laughable how fake their Bengali is even...

People spawning multiple accounts to support themselves, it is well-known who the perpetrators are.

Don't encourage these Morons. Tell them to f*ck off with their 'opinions' if it is clear they have no clue or have no genuine positive intent.

They were claiming there is no space for development projects in Bangladesh's budget which was quite hilarious so I showed the article defining ADP.

In the 2018-19 budget, the size of ADP was around $21 billion, about 35% of the budget. The implementation rate of ADP has hovered around 80-90% with the rate in the latest fiscal year of 2017-18 hitting about 94%.

Bangladesh's GDP growth has been largely driven by this infrastructural spending.

@Species bhai Bangladesh' Debt-to-GDP ratio is 33.36%, compared to 67.44% in Pakistan and 67.29% in India.

I believe we can leverage quite a bit more but would that be prudent?

 

[Mage]

Bangladesh' Debt-to-GDP ratio is 33.36%, compared to 67.44% in Pakistan and 67.29% in India.

We should try to lower it. Our credit rating is poor.

 

[Bilal9]

We should try to lower it. Our credit rating is poor.

I don't know if I'd agree with you.

https://www.dawn.com/news/1453706

Plus if you don't take on debt for infra and human resource development, you will never get out of low income status as a country.

We have plenty of room to take on more debt for development.

@Species bhai am I off?

 

[UKBengali]

Its fine, BD world leadership in 4th Industrial revolution will solve these petty printing money issues. Don't forget Aladdin skyscraper groundwork already laid, the foundations are being poured as we speak (dozens more of such skyscrapers are soon to be made too). Myanmar has been invaded, destroyed and Arakan free state has been formed too. Walton also is now exporting 10 billion dollars just by itself surpassing 1 billion target that was made earlier by a full order of magnitude.

Everything is proceeding to plan for developed country 2041. AL "knows what its doing"....just trust them and all their SDDS prime data. LDC status was simply just a ploy to get BD RMG "industrialised"...it is now a heavily industrialised country....consuming more energy per capita than India + Pak put together. It is even beating Switzerland and Scandinavia on corruption and ease of doing business....and all health and social metrics too. BAL STRONK!



Its ok BD can borrow much much more than this if it wants to (it has the best investment grade credit rating in the whole world, an industry leader!). The govt is just very fiscally prudent/responsible... so it chooses not to borrow 100s of billions even trillions of dollars each year! This govt is nothing short of a miracle....super transparent too. BD stock market will soon reach 10 trillion dollar market cap too....so there is no need for foreign borrowing at all!



How much of the 55 billion will be infra spending out of interest? Is there a good sector layout pie chart somewhere?

Butthurt, why you obsessed with BD 24/7?

You think I give a rat's *** about Indian economy?

I don't know if I'd agree with you.

https://www.dawn.com/news/1453706

Plus if you don't take on debt for infra and human resource development, you will never get out of low income status as a country.

We have plenty of room to take on more debt for development.

@Species bhai am I off?

AL government had been talking for years about if BD could afford to take on more debt to build infrastructure. This was carefully planned.
Fact is that BD has too low tax base to find 10s of billions of dollars every year to build the required infrastructure.
No need to worry as only the 12 billion dollar Russian loan for Roopur is at commercial rates, with the rest being soft or very soft loans.
Let poster's cry at BD progression as they can do nothing to stop it. If no major economic organisation is worried about BD debt trap, then BD is doing the right thing.