Business Report: Bangladesh extended a loan of $200 million to Sri Lanka from the foreign exchange reserves of Bangladesh Bank. Sri Lanka has repaid US$50 million out of that debt.
Bangladesh Bank Executive Director and Spokesperson Majbaul Haque said that we have received an installment of $50 million out of the $200 million loan given to Sri Lanka.
Another installment is due later this month. We expect that they will repay the entire loan within this year.
Sri Lanka took the loan in 2021 under the currency swap system with the condition of repayment within three months.
But could not repay the loan on time; They want time. Bangladesh also gives multiple round times when there is no way. At last Bangladesh Bank has given time till next September.
According to the information received, Bangladesh Bank released 50 million dollars in the first phase on 19 August 2021.
A second round of $100 million was awarded on 30 October of the same year.
Then in November 5 million dollars were given. Under the existing agreement, the money was to be returned along with interest between August, October, and November last year. But the country failed to repay the loan on time.
Bangladesh has to get 1.5 percent interest by adding the London Interbank Offered Rate or LIBOR in lieu of the loan. Sri Lanka is paying that interest regularly.