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Maldives seeks long term loans from Bangladesh, as Dhaka's economic profile rises steadily

The Maldives has sought a long-term loan from Bangladesh, as the two South Asian countries try to enhance bilateral ties, with a flurry of high-level visits taking place in the last few weeks, ahead of the upcoming visit by Bangladesh Prime Minister Sheikh Hasina later this month

Dec 05, 2021
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Maldives-Bangladesh

The Maldives has sought a long-term loan from Bangladesh, as the two South Asian countries try to enhance bilateral ties, with a flurry of high-level visits taking place in the last few weeks, ahead of the upcoming visit by Bangladesh Prime Minister Sheikh Hasina later this month. Dhaka, which had extended a $250 million Line of Credit to Male earlier this year, said it was “positively considering” the request.    

Fazle Kabir, the governor of Bangladesh Bank, has confirmed that they had received the loan request from the Maldives, Sun news reported. It came days after senior officials of the two countries exchanged visits in the last few weeks. 

"The Maldives requested us for a loan for a longer-term. We are actively considering it,” Kabir was quoted as saying by Sun news. 

Last week, Bangladesh Foreign Secretary Masud Bin Momen visited Male and had held discussions with senior officials there. He announced there that Hasina would visit the archipelago later this month, reported Sun News. Prior to Momen’s visit, Maldivian Vice-President Faisal Naseem visited Bangladesh. 

During his visit last month, Faisal met Prime Minister Sheikh Hasina, President Abdul Hamid, and Foreign Minister AK Abdul Momen among other senior ministers. 

The request for the long-term loan came months after Bangladesh had extended a similar $250 million Line of Credit to the Maldives. Fisheries, human resources, and education are among the key areas the two countries enjoy close cooperation in. 
 
In the region where almost all countries, barring India, are struggling, Bangladesh’s profile has grown steadily—mainly because of its steady economic growth —as smaller countries like Sri Lanka and Nepal look to Dhaka to deepen economic ties. For instance, earlier this year, Bangladesh had signed a $200 million currency swap deal with Sri Lanka. 

(SAM)  

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