Bangladesh eyes alternatives to China’s belt and road loans as it seeks to fund future development

Minister of State for Foreign Affairs Mohammed Shahriar Alam said the country ‘has gained the economic power’ to service its loans from Beijing

But he added that Dhaka was now looking at other financing models, such as public-private partnerships, to spur further growth

Reading Time:3 minutes

Bangladesh Minister of State for Foreign Affairs Mohammed Shahriar Alam. Photo: Twitter

Published: 11:00am, 23 Apr 2019Updated: 5:13pm, 24 Apr 2019

Bangladesh “never will” ask China for more loans as it looks for ways to finance its future development, according to the country’s Minister of State for Foreign Affairs Mohammed Shahriar Alam.

Speaking to the South China Morning Post ahead of the Belt and Road Forum in Beijing on Thursday, Alam said any amount of debt can be “dangerous” for countries not achieving high economic growth, adding that “Bangladesh has gained the economic power” to service its own loans linked to Beijing’s “Belt and Road Initiative”.

Chinese President Xi Jinping (centre) walks with Bangladesh President Abdul Hamid (centre right) after arriving in Dhaka on October 14, 2016. Photo: AFP

During Chinese President Xi Jinping’s visit to Bangladesh in 2016, the two governments signed 27 agreements for investments and loans, amounting to a reported US$24 billion.

Concerns were raised at the time that this could be creating a debt trap for the South Asian country – criticism that Chen Wei, deputy chief of mission at China’s embassy in Dhaka, has dismissed as a “total misunderstanding” and “smears” that are “totally groundless”.

When asked if Dhaka planned to seek more loans from Beijing during the upcoming Belt and Road Forum, Alam said his government “never had this intention and never will ask for more loans”.