Bangladesh slips into Chinese debt trap: Report
The allocation for debt servicing in Bangladesh’s national budget exceeds priority sectors such as agriculture and education. The country’s debt-to-GDP ratio has surged past 39 per cent, from around 34 per cent in 2017–18, reflecting years of heavy borrowing to finance infrastructure and development projects, the article points out
image for illustrative purpose
New Delhi: Bangladesh is facing a major economic problem as rising debt repayments, much of them linked to Chinese loans, squeeze public finances and limit policy choices.
Senior officials now openly acknowledge that the country has fallen into a debt trap like Sri Lanka and Pakistan, according to a report in the London-based 'Asian Lite' newspaper.
Chairman of Bangladesh’s National Board of Revenue M Abdur Rahman Khan said at a seminar recently that the country “has already fallen into a debt trap” and unless the scale of the problem was recognised, recovery would be impossible.
The allocation for debt servicing in Bangladesh’s national budget exceeds priority sectors such as agriculture and education. The country’s debt-to-GDP ratio has surged past 39 per cent, from around 34 per cent in 2017–18, reflecting years of heavy borrowing to finance infrastructure and development projects, the article points out.
