Beijing agrees to extend the loan repayment period and is reviewing Dhaka's request for a reduction in interest rates
- Bangladesh requested a reduction in interest rates from 2-3% to 1%. - Bangladesh reaffirmed its commitment to the "One China Principle" during discussions.
China, recognizing Bangladesh's strong loan repayment track record, has "agreed in principle" to extend the loan repayment period and is considering a reduction in interest rates. During a meeting in Beijing, Bangladesh’s Foreign Adviser Md Touhid Hossain requested Chinese Foreign Minister Wang Yi to reduce the interest rate for Preferential Buyer’s Credit (PBC) and Government Concessional Loans (GCL) from 2-3% to 1%, extend the repayment period from 20 to 30 years, and waive the commitment fee. Wang Yi assured support and highlighted China’s commitment to continuing duty-free, quota-free (DFQF) access for Bangladeshi products for three years after Bangladesh's graduation from the Least Developed Country (LDC) status.
The two nations signed an "Implementation Plan" for sharing hydrological data of the Yaluzangbu-Jamuna River and reaffirmed their commitment to the Comprehensive Strategic Cooperative Partnership. Wang Yi praised Bangladesh’s role in regional diplomacy and assured respect for its sovereignty and territorial integrity, emphasizing China’s continued support for Bangladesh's stability, reforms, and development initiatives.
Bangladesh’s strategic importance under the Belt and Road Initiative (BRI) was underscored, with agreements to collaborate on projects like the Dasherkandi Sewage Treatment Plant, Mongla Port modernization, and digital connectivity expansion. The leaders also discussed the Rohingya crisis and agreed to work toward a durable solution, with China committing to engage Myanmar for regional stability.
Bangladesh reaffirmed its support for the "One China Principle" and UNGA Resolution 2758. Wang Yi welcomed Bangladesh’s proposal to establish a specialized Chinese hospital in Dhaka, particularly to commemorate the 50th anniversary of Bangladesh-China diplomatic relations. Both sides agreed to celebrate this milestone with a range of activities.
Discussions extended to financial and technical cooperation in education, infrastructure, agriculture, energy, and blue economy sectors. Bangladesh expressed interest in President Xi’s global initiatives, and both sides explored collaboration in multilateral forums, including the UN.
Adviser Hossain held meetings with senior officials from China International Development Cooperation Agency (CIDCA), discussing concessional loan terms and larger project financing. CIDCA positively responded to reducing loan interest rates, extending repayment periods, and considering grants for major infrastructure projects.
The visit, coinciding with the golden jubilee of diplomatic ties, marked a milestone in Bangladesh-China relations, with both nations reaffirming their intent to deepen bilateral cooperation. Adviser Hossain extended an invitation to Wang Yi to visit Bangladesh, further strengthening ties between the two countries.
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