Cut interest rate to make lending rate more competitive, PM to IDB

Prime Minister Sheikh Hasina has requested the Islamic Development Bank (IDB) to cut the interest rate of International Islamic Trade Finance Corporation (ITFC), an autonomous entity within the IDB, to make its lending rate more "competitive" for the country's oil-import purpose.

The Premier came up with the request when acting IDB president Dr Ahmed Tiktik called on her at the Royal Conference Palace here on Saturday evening.

Foreign Secretary Md Shahidul Haque and PM's Press Secretary Ihsanul Karim briefed reporters after the meeting.

As a leader in Shari'ah-compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its member countries. Its primary focus is to encourage intra-trade among OIC member countries.

As a member country of IDB, Bangladesh takes credit from the ITFC for oil import.

The IDB acting president informed the Premier that IDB is taking a big initiative to form an Islamic Infrastructure Bank which would provide funding to the Muslim countries in big infrastructural projects.

In response, Sheikh Hasina expressed her country's interest to take part in such an initiative.

Apprising the Prime Minister about some of its issues, Dr Ahmed Tiktik said that the IDB is going to open its new country gateway office in Bangladesh to further strengthen its operation in the country.

He said that the IDB is continuing its operations in Bangladesh prioritizing on energy, rural housing and road projects.

The IDB acting president said that the work of some 90 school cum-cyclone shelters out of 173 school-cum-cyclone shelters have been completed under the 'Fael Khair' programme in 13 districts of southern Bangladesh at a cost of $ 130 million donated by King Abdullah International Humanitarian and Charitable Foundation for the Sidr and Aila affected people.

Dr Ahmed Tiktik informed the Prime Minister that the IDB would provide some 10 mobile clinics to Bangladesh in the next year to facilitate medical services in rural remote areas.

Highlighting the model of development of Bangladesh before the IDB acting president, Sheikh Hasina said that Bangladesh has raised its budget size several times as well as is poised to attain 7.05 percent GDP growth.

Foreign Minister AH Mahmood Ali and PM's Principal Secretary Md Abul Kalam Azad were present.

Sheikh Hasina is now on a five-day official visit to the Kingdom of Saudi Arabia (KSA) at the invitation of King Salman bin Abdulaziz Al Saud.

Source: BSS.