$6.21bn foreign fund released in FY ’19

Hasibul Aman

21st July, 2019 02:24:03 printer

$6.21bn foreign fund released in FY ’19

Foreign fund inflow against development projects continued a bullish trend in the just-concluded fiscal year as well after crossing a $6 billion threshold for the first time in FY’18.

The country received US$ 6.21 billion as foreign fund from development partners in FY’19, including $5.94 billion as loans and US$ 256 million grants, suggest provisional data from Economic Relations Division (ERD).

The last fiscal amount disbursed was $150 million or 2.5 percent lower than FY’18s final disbursement of $6.37 billion that witnessed a 73.57 percent surge over $3.67 billion fund released in FY’17.  

At the same time, the ERD’s fund release slightly undershot its yearly revised fund-release target of $6.35 billion even though the former ERD secretary on several occasions hoped that they would cross $7 billion mark in FY’19. 

ERD officials said the fund release trend remained high in the last fiscal year as some large foreign-funded projects gained momentum in the bygone year.

The projects include Rooppur Nuke power plant, Padma rail link project, Matarbari coal power plant, metro rail and Dohazari-Cox’s Bazar-Gundum rail line projects. 

Besides, the government various steps and greater oversight for foreign funded large schemes also contributed a lot to this end, according to ERD officials.

The fund commitments, on the other hand, reached $9.78 billion, largely overshooting the yearly target of $6 billion commitments although it remained well below $14.90 billion commitments made in FY’18 driven by some large project funds.

The last fiscal year’s total committed funds include $6.85 billion loan and $1.26 billion grants.

Last year, commitments mainly came from the World Bank (WB), the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), according to ERD officials.

In FY’19, the WB released the highest amount of $1.97 billion followed by $1,194.9 million by JICA, $1,215 million by ADB and the Chinese government $450 million, ERD’s provisional data showed.

Of the funds, the WB made commitments for the highest amount of $2.90 billion while ADB committed for $2.86 billion and Japan $2.60 billion. 

Meanwhile, the government managed to repay $1.56 billion loans including $1.18 billion as principal amount and $387 million as interest in the just-concluded fiscal year.

In the previous fiscal year, the government repaid $1.41 billion loans including $1.11 billion principal amount and $299 million interest.