Bangladesh takes two types of loans from China namely preferential buyer loans and government concessional loans. The interest rate of the loan is 2-3 percent and the repayment period is 20 years. China has agreed to increase the repayment period from 20 years to 30 years.
On Tuesday (January 21) in Beijing, Foreign Affairs Adviser. This agreement was reached during bilateral talks held between Touhid Hussain and Chinese Foreign Minister Wang Yi.
According to a statement, Foreign Affairs Advisor Tauhid Hossain visited the country at the invitation of Chinese Foreign Minister Wang Yi. This is his first bilateral visit after taking charge of the Ministry of External Affairs. In a bilateral meeting with him on Tuesday, the Chinese foreign minister agreed in principle to extend the loan repayment deadline.
The meeting was held at the Diaoyutai State Guest House in Beijing on Tuesday. In this, Tauhid Hossain requested China to reduce the interest rate for preferential loans and government concessional loans from 2-3 percent to 1 percent. He also requested to waive the commitment fee and extend the repayment period from 20 years to 30 years.
At this time, China’s foreign minister assured to consider the request to reduce the interest rate. He also assured to continue DFQF (Duty Free and Quota Free Market Access) access for Bangladeshi products even after transition from LDC (Least Developed Country) in 2026.
The statement also said that at the request of Bangladesh, the Foreign Minister informed about the decision to designate three to four state-of-the-art hospitals in Kunming, China for high-quality treatment of Bangladeshi citizens.
The foreign minister also welcomed China’s proposal to build a specialized hospital in Dhaka as a token of goodwill on the occasion of the 50th anniversary of Bangladesh-China diplomatic relations.
The Chinese minister responded positively to Bangladesh’s request for financial, technical and capacity building cooperation in sectors such as education, railways, agriculture, water resources management, livestock, fisheries, ship breaking, sustainable and renewable energy and green economy.
During the meeting, both countries reiterated their commitment to a comprehensive strategic cooperative partnership. Before the start of the discussion, the Foreign Minister of China gave a warm welcome to Tauhid Hossain.
In the meeting, both sides expressed their commitment to strengthen cooperation for mutual benefit and prosperity.
In the meeting, Wao Yee said that the people of Bangladesh have given an important responsibility to the Chief Adviser Professor Muhammad Yunus. He devoted himself to maintain the civilization and unity of the country and his government did many practical things for Bangladesh.
He said that China respects the sovereignty and geographical integrity of Bangladesh. His country supports the stability, reform, transition to democracy and development initiatives here.
He mentioned that China wants to see the economic development of Bangladesh in line with their own development.
In addition to the official meeting with the Foreign Minister of China, he will also meet the Minister of Commerce of China Wang Wentao and Chairman of the China International Development Cooperation Agency (CIDCA) Lao Zhaohui.
Later will go to Shanghai from Beijing. Tauhid Hossain will participate in a discussion at the Shanghai Institute for International Studies (SIIS) there. Besides, the adviser will exchange ideas with the leaders of the Shanghai Chamber. Later visit three factories on electric vehicles, robotics and agricultural processing.
The adviser’s visit to China will end on January 24.
