Debapriya emphasises roadmap for debt repayment of 20 mega projects

[bluesky]

Debapriya emphasises roadmap for debt repayment of 20 mega projects

Economist Dr Debapriya Bhattacharya on Thursday called for a roadmap for debt repayment of the top mega projects which will be started between 2024 and 2026. "A major shock is coming to the economy between 2024 and 2026 in terms of debt repayments for mega projects that cause concern for the econo

thefinancialexpress.com.bd

Debapriya emphasises roadmap for debt repayment of 20 mega projects​

Published: July 21, 2022 17:54:19

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Economist Dr Debapriya Bhattacharya on Thursday called for a roadmap for debt repayment of the top mega projects which will be started between 2024 and 2026.

"A major shock is coming to the economy between 2024 and 2026 in terms of debt repayments for mega projects that cause concern for the economy. A plan is needed to deal with this situation," he suggested.

Dr Debapriya, a special fellow of the Center for Policy Dialogue (CPD), a private think tank, spoke to reporters about 20 mega projects in the country in a virtual conversation on Thursday, reports UNB.

He also said currently the ratio of foreign debt to gross domestic product (GDP) is 1.1 per cent which may be doubled by 2026.
In response to the question of whether Bangladesh will be in trouble or not, he said, it will actually depend on how the country's reserve situation is at that time, and how well the economy remains.

Debapriya also said that Russia, China, and Japan will have to be paid more for big projects. Among them, China's debt repayment period is quite short.

He analysed 20 mega projects, including Padma Bridge, Rooppur Nuclear Power Plant, tunnel under Karnaphuli River, Matarbari coal-based power plant, metro rail, rail connection of Padma Bridge and others.

About Tk 5.57 trillion is being spent on these projects. About 62 per cent of this is foreign debt.

Debapriya also said that since 2009 there is a kind of national consensus on taking up big projects. Politicians show interest in it as visible development can be seen if big projects are implemented, he said.

Even though 20 projects are scheduled to be completed by 2028, Debapriya said that it will not be possible to complete all of them in the current decade.

He also pointed out that there is a lack of transparency and accountability in project implementation.

 

[BananaRepublicUK]

Debapriya emphasises roadmap for debt repayment of 20 mega projects

Economist Dr Debapriya Bhattacharya on Thursday called for a roadmap for debt repayment of the top mega projects which will be started between 2024 and 2026. "A major shock is coming to the economy between 2024 and 2026 in terms of debt repayments for mega projects that cause concern for the econo

thefinancialexpress.com.bd

Debapriya emphasises roadmap for debt repayment of 20 mega projects​

Published: July 21, 2022 17:54:19

---

Economist Dr Debapriya Bhattacharya on Thursday called for a roadmap for debt repayment of the top mega projects which will be started between 2024 and 2026.

"A major shock is coming to the economy between 2024 and 2026 in terms of debt repayments for mega projects that cause concern for the economy. A plan is needed to deal with this situation," he suggested.

Dr Debapriya, a special fellow of the Center for Policy Dialogue (CPD), a private think tank, spoke to reporters about 20 mega projects in the country in a virtual conversation on Thursday, reports UNB.

He also said currently the ratio of foreign debt to gross domestic product (GDP) is 1.1 per cent which may be doubled by 2026.
In response to the question of whether Bangladesh will be in trouble or not, he said, it will actually depend on how the country's reserve situation is at that time, and how well the economy remains.

Debapriya also said that Russia, China, and Japan will have to be paid more for big projects. Among them, China's debt repayment period is quite short.

He analysed 20 mega projects, including Padma Bridge, Rooppur Nuclear Power Plant, tunnel under Karnaphuli River, Matarbari coal-based power plant, metro rail, rail connection of Padma Bridge and others.

About Tk 5.57 trillion is being spent on these projects. About 62 per cent of this is foreign debt.

Debapriya also said that since 2009 there is a kind of national consensus on taking up big projects. Politicians show interest in it as visible development can be seen if big projects are implemented, he said.

Even though 20 projects are scheduled to be completed by 2028, Debapriya said that it will not be possible to complete all of them in the current decade.

He also pointed out that there is a lack of transparency and accountability in project implementation.

Who the hell is this RAW agent?!!!

Economist hehehe

 

[bluesky]

Who the hell is this RAW agent?!!!

Economist hehehe

Debapriya is not related to the BAL party. How can he be a RAW agent? He is highly educated. An economist like him deserves to replace that half-educated Hasina Bibi.

 

[UKBengali]

This is the interesting point:

"About Tk 5.57 trillion is being spent on these projects. About 62 per cent of this is foreign debt."


BD is using more and more of it's own funds to finance these projects - 38% now and it should aim to get to at least 50% by 2025.

BD will be just fine paying back the loans as it's export earnings keep rising every year + also remittances will help with forex reserves.

 

[BananaRepublicUK]

Debapriya is not related to the BAL party. How can he be a RAW agent? He is highly educated. An economist like him deserves to replace that half-educated Hasina Bibi.

So you want BD to be run by termite Raw agents??!!

All those “smart people” who oversaw a covid genocide in India.

Whilst “half educated” Hasina oversaw one of the best managed countries in the world in terms of death and economic health.

@UKBengali

 

[bluesky]

BD will be just fine paying back the loans as it's export earnings keep rising every year + also remittances will help with forex reserves.

You just do not understand the mechanism of repayment. All dollars are the property of Bangladesh Bank and not the property of the GoB.

So, to make the repayment to foreign lenders, the govt has to buy dollars from the BB. The govt has two ways to do this.

1) It collects taxes (direct, import, and others) from the people, or
2) It prints paper notes and buys the dollars

In 1), the cycle is sound. There will be few bad effects on the economy. However, if the govt prints money to buy dollars, it causes inflation and the price of the Taka goes down.

I believe that the reason for the present devaluation of the Taka is partially due to printing paper money. The more the govt does so, the more it creates inflation and the lesser becomes the value of the Taka in the international market.

 

[AmiEktaKharapChele]

Debapriya is a well known Indian agent.

 

[BananaRepublicUK]

You just do not understand the mechanism of repayment. All dollars are the property of Bangladesh Bank and not the property of the GoB.

So, to make the repayment to foreign lenders, the govt has to buy dollars from the BB. The govt has two ways to do this.

1) It collects taxes (direct, import, and others) from the people, or
2) It prints paper notes and buys the dollars

In 1), the cycle is sound. There will be few bad effects on the economy. However, if the govt prints money to buy dollars, it causes inflation and the price of the Taka goes down.

I believe that the reason for the present devaluation of the Taka is partially due to printing paper money. The more the govt does so, the more it creates inflation and the lesser becomes the value of the Taka in the international market.

You need to stop falling for RAW propaganda!

Every countries currency is falling against the Dollar!

Even the “mighty Indian Rupee” has fallen to its lowest level.

 

[bluesky]

Debapriya also said that Russia, China, and Japan will have to be paid more for big projects. Among them, China's debt repayment period is quite short.

He analysed 20 mega projects, including Padma Bridge, Rooppur Nuclear Power Plant, tunnel under Karnaphuli River, Matarbari coal-based power plant, metro rail, rail connection of Padma Bridge and others.

About Tk 5.57 trillion is being spent on these projects. About 62 per cent of this is foreign debt.

Last year the repayment amount was $1.9 billion. This year, the amount will reach above $2.2 billion. The repayment amount will keep on increasing until 2026 when the amount of foreign repayment will be about $4.5 billion or more.

Not bad for a country that borrows in two hands. A time will shortly arrive when BD will be borrowing more only to repay the arrears, and the amount of borrowing will keep on rising.

What a BAL style of so-called development that can no more be sustained only after a few years. This is because people are fond of stealing money instead of becoming a kind of Mistori.