The global rating agencies Standard & Poor’s and Moody are likely to delay the evaluation of credit worthiness of Bangladesh due to political unrest, said an official.
Besides, the government will not issue sovereign bonds till the holding of general election.
“We will delay the credit rating of Bangladesh by 3-4 months as the country is now politically unstable,” said Catherine Bouvier d’ Yvorie, consultant for Bangladesh on sovereign bonds and Standard & Poor’s and Moody’s ratings.
She was talking to the Dhaka Tribune after a meeting with Bangladesh Bank Governor Dr Atiur Rahman and Economic Relations Division Secretary Abul Kalam Azad in Washington DC recently.
Catherine, however, said Bangladesh’s growth and macro-economic picture have been stable for past couple of years despite global recession and natural disasters in the country.
“Bangladesh economy stands up in the face all odds.”
She said: “Whoever be in power, growth needs to be continued and jobs must be ensured for the youths.”
Bangladesh Bank governor Dr Atiur Rahman told the Dhaka Tribune that a technical committee is now working on issuing sovereign bonds.
“But the issuing (of sovereign bonds) will be delayed as election is ahead. New government will consider the issuing of the bonds,” he said.
Besides, in this time of political unrest, the sovereign bonds might be unable to draw the appropriate amount.
The central bank governor pointed out that if the government has to leave the money unspent during last days of tenure, interest against bonds will have to be paid without using the money.
“If we get $500m from the bonds and are unable to use that money, there will be an increase in cost of investment.”
Besides, Dr Atiur Rahman saw Bangladesh would do well in credit rating despite political unrest.
“We told the Moody that Bangladesh will perform well even the political instability is continuing.”
Last year, Standard & Poor’s rated Bangladesh BB- and stated a good outlook.