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Indian debt trap in Bangladesh

I dont see the loan terms are as bad as it was said by many users.
But One thing bothers me.. "Why dont both the govt openly disclose that loan is provided in return of BD granting India the transit". I want honest disclosure. Transit aint free and BD should had charged India for the infrastructure instead of taking loan which needs to be paid back with interest. We could provide free to Nepal and Bhutan which we did as they are less developed and the volume of trade will be minimal. But for India we should charge.
:coffee:
Who gave you the idea that the transit will be free? Most countries collect transit toll on the basis of the tonnage that passes through the system (Toll naka/Ceck post etc.) + some overheads for port access.
 
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Who gave you the idea that the transit will be free? Most countries collect transit toll on the basis of the tonnage that passes through the system (Toll naka/Ceck post etc.) + some overheads for port access.

Ohh nooo.. I was talking about the down payment. Ofcourse you have to pay the fee but you skipped the downpayment in the name of LOAN... ;)
 
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may be due to lack of expert strategic and economic analysts ...our IIMs can help
No thanks... we already have enough of them here... in millions. No need to offer more kindness. Otherwise, that'd also be connected to some conspiracy.
 
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First india using stooge Awami regime signed transit deal which has still not been presented in JS. Awami regime and indian dalals told lie to people of billions in transit fees and taxes. Now Awami regime in line of indian push leaning to waive transport duty. Its pitty indian dalals are left to hold the bag of indo awami lie.

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India wants duty waiver on ODC transport

Shahidul Islam Chowdhury

India is pressing Bangladesh to agree to waive duties on transport of over-dimensional cargoes from its western side to the north-eastern states, government officials said.

‘India is asking us to waive duties on transport of ODCs,’ a senior official at the Prime Minister’s Office told New Age.

‘An adviser to prime minister Sheikh Hasina’, the official said, ‘is in favour of waiver of duties on transport of ODCs on the plea that it is a one-time deal between the two countries’.

‘Apparently it is a one-time deal to allow India to transport ODCs [over- dimensional cargoes] via Bangladesh. But according to Article 22 of the joint communiqué issued on January 13 during the prime minister’s visit to New Delhi, it is a deal for a “longer term transportation of ODCs”, which has long-term implications,’ another government official said.
Bangladesh agreed, during foreign minister Dipu Moni’s visit to New Delhi in September, 2009, to provide India access to Ashuganj port here to facilitate ‘transport of Over Dimensional Consignments for the Palatana power project in Tripura’.
During Sheikh Hasina’s visit to New Delhi in January this year, the two sides agreed to declare Ashuganj in Bangladesh and Silghat in India ports of call.
In a joint meeting in April, both sides agreed that Bangladesh would collect duties under the Bangladesh customs laws.
Subsequently on May 31, the two sides amended the ‘Protocol on Inland Water Transit and Trade’ and added Ashuganj and Shilghat as ports of call.
Bangladesh has eventually allowed multi-module transit to India after adding Ashuganj as a new trans-shipment point between the two countries.
As per the new arrangement, India can now carry its goods not only by waterways but also by road and rail transports from one part of its territory to the other via Bangladesh.

The PIWTT amendment allowed India to carry goods to Ashuganj port by ferry and from where they could be taken to the north-eastern India by road transports and railway.

According to the amended PIWTT, the new route would be Kolkata-Holdiya-Raimongal-Mongla-Kaukhali-Barisal-Hizla-Chandpur-Narayangang-Boirab Bazar- Ashuganj. From Ashuganj, goods would be carried by trucks and tractor-trailors or by railway to the Akhaura-Agartala border.

The National Board of Revenue (NBR) has set duties by a statutory regulatory order (SRO) on June 10 for trans-shipment and transit of goods through Bangladesh.

The duties would be Tk 10,000 per TEU container if the cargo is transported by road or rail in such containers and Tk 1,000 per tonne if transported by covered vans or trucks or in bulk by non-container ships and trains.

The NBR circular also says that controlled items like arms and ammunition, alcoholic drinks and narcotics, endangered species of plants and animals, and other commodities with a ban on their import will not be allowed for trans-shipment or transit.
The SRO also said that Bangladesh customs officers must know and would have the authority to check what goods were being trans-shipped or in transit.

A Bangladesh Tariff Commission member said, ‘Bangladesh stands to lose a large amount in revenue if duties are waived on the Palatana-bound ODCs as it would set a precedent to allow India to transport both public and private cargoes between their western and eastern regions.’

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The lenders tend to skew the deal toward their interest, or at least the people with controlling interest. China objected over WB loan for Arunachal. Its a common business practice.

There are planty of places to get money from at better terms.
 
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There are planty of places to get money from at better terms.

This is not a loan; this is Awami regime making Bangladeshi tax payers paying for infrastructure that will be used for indian transit.
 
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This is not a loan; this is Awami regime making Bangladeshi tax payers paying for infrastructure that will be used for indian transit.


1 min sir, what did just said ?? "this is Awami regime making Bangladeshi tax payers paying for infrastructure that will be used for indian transit." ----------------- But ultimatly all the infrastructure will be in Bangladesh and india not not taking anyting .... all your coming generations can use it and develope further.


By the way... Good morning sirji ...
 
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Ohh nooo.. I was talking about the down payment. Ofcourse you have to pay the fee but you skipped the downpayment in the name of LOAN... ;)
There is never a 'downpayment' on these deals. Taiwan or Hong Kong never ask for 'downpayments' do they? They built their ports with their money & and collected revenue from Transit/Tonnage. In your case, because your situation is strained, you may not be able to build/ take 10 years to complete the required infrastructure so we've given you a loan which you can repay over a loooong time (25 years) and a very nominal interest.

The Awami League is smart enough to understand that this opportunity isn't going to last for long. Right now both countres on your border- India & China are growing at 9-10% something . Right now are appetites are huge and we'll need everything from everywhere. But this won't last forever- in say 35-40 years our natural growth levels would be dropping because of falling population, shifting balance to consumer led economy etc.---it's already happening in China. So they want to moetize the opportunity immedeately. Fact is you are al least 15 years late. You should started looking at these avenues at least by mid 1990s when it was clear what kind of a role you can play. The way I look at it, your total revenue possibility is already some 35% eroded. If you wait anymore, you can twiddle your thumbs and repent.
 
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There is never a 'downpayment' on these deals. Taiwan or Hong Kong never ask for 'downpayments' do they? They built their ports with their money & and collected revenue from Transit/Tonnage. In your case, because your situation is strained, you may not be able to build/ take 10 years to complete the required infrastructure so we've given you a loan which you can repay over a loooong time (25 years) and a very nominal interest.

The Awami League is smart enough to understand that this opportunity isn't going to last for long. Right now both countres on your border- India & China are growing at 9-10% something . Right now are appetites are huge and we'll need everything from everywhere. But this won't last forever- in say 35-40 years our natural growth levels would be dropping because of falling population, shifting balance to consumer led economy etc.---it's already happening in China. So they want to moetize the opportunity immedeately. Fact is you are al least 15 years late. You should started looking at these avenues at least by mid 1990s when it was clear what kind of a role you can play. The way I look at it, your total revenue possibility is already some 35% eroded. If you wait anymore, you can twiddle your thumbs and repent.

Look buddy.. 1bln is nothing considering the amount we are investing in our own infrastructure. Padma(Ganga) bridge costing us $2.5 bln, Deep sea port costing $8.7 bln, New airport cost $7bln, Dhaka-Chittagong elevated expressway cost $4.5bln, Dhaka metro rail cost $3bln, Dhaka elevated express way cost $2.5 bln, Power Projects more than $10bln, Other infrastructure and rail might cost anoter $5-10 bln. These are all the projects we are working on now.
My question is not about scarcity of money but to get a fair bargain from India. If we really had to take loan from for giving transit to India then Why not WB? I bet India would had agreed 500 mln if not 1bln as downpayment as they need transit so bad. Its all about monopoly and making money. And why not? In 1947 India gave us nothing but took everything that we built for thousands of years. Now its our turn to take that back... :D
 
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You should apply for FM post in BD since you are definately smarter :)
 
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Look buddy.. 1bln is nothing considering the amount we are investing in our own infrastructure. Padma(Ganga) bridge costing us $2.5 bln, Deep sea port costing $8.7 bln, New airport cost $7bln, Dhaka-Chittagong elevated expressway cost $4.5bln, Dhaka metro rail cost $3bln, Dhaka elevated express way cost $2.5 bln, Power Projects more than $10bln, Other infrastructure and rail might cost anoter $5-10 bln. These are all the projects we are working on now.
My question is not about scarcity of money but to get a fair bargain from India. If we really had to take loan from for giving transit to India then Why not WB? I bet India would had agreed 500 mln if not 1bln as downpayment as they need transit so bad. Its all about monopoly and making money. And why not? In 1947 India gave us nothing but took everything that we built for thousands of years. Now its our turn to take that back... :D
then from AL's perspective it's one additional billion available to them. So that you don't have to take out 1 Bn from the airport to build the port or the roads.

If you think this deal is unfair, let me tell you that unlike your fantasies, there is a concept in finance called 'net present value', when you pay us back the 1 Bn at the end of 25 years, it's value to us will be say $300-400 M, not more than that. You think 1.75% interest is unfair? Hell inflation alone will wipe out a good 6-7% of the total value of the money every year. And you still think it's unfair?

You are one of the AL baiters aren't you? So let me ask you a question. For five years your previous govt did nothing except sit on their a$$ and complacently blame India for everything. Did you ever question that? No? On teh contraray you just want to blame even the smarter politicans who are realy trying to do something for your country.
 
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then from AL's perspective it's one additional billion available to them. So that you don't have to take out 1 Bn from the airport to build the port or the roads.

If you think this deal is unfair, let me tell you that unlike your fantasies, there is a concept in finance called 'net present value', when you pay us back the 1 Bn at the end of 25 years, it's value to us will be say $300-400 M, not more than that. You think 1.75% interest is unfair? Hell inflation alone will wipe out a good 6-7% of the total value of the money every year. And you still think it's unfair?

You are one of the AL baiters aren't you? So let me ask you a question. For five years your previous govt did nothing except sit on their a$$ and complacently blame India for everything. Did you ever question that? No? On teh contraray you just want to blame even the smarter politicans who are realy trying to do something for your country.


Come on dude, his post was totally from a non-political view....we saying anything about the loan is not going to stop our government from doing what it thinks is better....lets not talk on it anyway, i am sure we are all fed up of having those bashing threads/posts....

What Iaj mentioned was that if loan was needed to provide transit, then why not WB but India....?? Thats all....its all about making money as he said, just his view....


Cheers!!!
 
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