• Thursday, May 13, 2021
  • Last Update : 02:42 pm

Govt curtails projects' grant threshold

  • Published at 12:01 am October 3rd, 2019
Cash incentives for RMG exports: pros and cons
Mahmud Hossain Opu/Dhaka Tribune

The cabinet committee on economic affairs (CCEA) approved a proposal to this effect on Wednesday

The government has curtailed the grant threshold in foreign financing development projects from 35% to 25% to ensure smooth inflow of disbursement against external borrowing.

The cabinet committee on economic affairs (CCEA) approved a proposal to this effect on Wednesday.

The Economic Relations Division (ERD) sent the proposal as per the decision of the standing committee on non-concessional loan.

The Finance Minister AHM Mustafa Kamal said the grant element threshold in projects submitted for external borrowing were curtailed to avoid slow disbursement.

He said the country was going ahead towards achieving the status of a middle income nation and it would need to pay more against foreign debt in the coming days.

“If we don’t do it, we may face a sluggish disbursement against external borrowing. So, the initiative has been taken to ensure smooth disbursement,” said Kamal while briefing reporters on the CCEA meeting outcome at the secretariat.

According to World Bank (WB), the degree of concessionality of a loan is measured by its “grant element”.

The WB says the grant element is defined as the difference between the loan’s nominal value (face value) and the sum of the discounted future debt-service payments to be made by the borrower (present value), expressed as a percentage of the loan’s face value.

According to ERD data, Bangladesh received $79.25 billion in foreign financing since after independence up to June 2018. Of the amount, loans were $51.83 billion and grants $ 27.42 billion.

Finance minister said Bangladesh was good in external debt management.

Facebook 51
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail