Bangladesh Petroleum Corporation (BPC) has sought Tk9.65bn from the Finance Division which was not provided in last four fiscal years since 2009-10.
Finance Minister AMA Muhith said all the money not supplied would be made available to all entities including BPC by the end of the government’s tenure.
According to a senior finance division official, the finance minister will settle the issue very soon.
Last week, the division formed a technical committee which will recommend on streamlining BPC’s operation.
The committee, headed by additional secretary to finance division Ranjit Kumar Chakraborty, will also assess profit, expenditure and loss of the state-owned company.
Under the IMF condition for the ECF fund, the committee will work in efforts to keep BPC loss within a limit which will not widen the estimated budget deficit in the current fiscal.
Meanwhile, BPC is going to borrow a syndicated loan of $400m in October from three banks including Standard Chartered Bank, HSBC and Citi Bank NA to import petroleum fuel.
The loan at an interest rate of around 4.6% will be available in two installments.
Of the amount, $200m will come between November and December in first installment while the remaining part will be available between January and April next year.
According to an official, the interest rate should not exceed 4.6% as the loan is being taken under the British Bankers’ Association Libor rate which has dropped to a lower level.
Libor rate, the London Interbank Offered Rate, is an average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks.
BPC chairman Md Eunusur Rahman said the loan is being taken from foreign banks as the interest rates in local banks are higher.
He added the corporation had already overcome liquidity crisis by local sales proceeds, ITFC loan and deferred payment facilities.
Besides, the subsidy on diesel has also reduced to Tk9 per litre after fall of price on international market, which helps to increase liquidity of the BPC,
“So, the loan would not be required before November,” said BPC chief.
Mentioning that the government provided BPC with Tk60bn last year, Enusur Rahman said the corporation has sought some money this year too.
Every year, the government borrows loan from the International Islamic Trade Finance Corporation (ITFC) of Islamic Development Bank to import 5.5m tonnes of petroleum fuel. But the interest rate of the ITFC loan is 4.65%.
As per the syndication terms, the government will not bear any penalty burden in case the BPC fails to receive the committed loans.
Official sources said a recent meeting of Energy and Mineral Resources Division decided on the taking of syndicated loan.
State Minister for Power and Energy Muhammed Enamul Huq, BPC chairman Enusur Rahman and representatives from the three banks attended the meeting.
The representatives said a number of banks had already committed to finance the loan.