Sri Lanka pays back $50 million to Bangladesh
August 21, 2023 08:51 pm
Bangladesh has received the first instalment of $50 million from the $200 million loan taken by Sri Lanka in September 2021.
The financial assistance was extended by the Bangladesh Bank to Sri Lanka to address a pressing foreign exchange reserve crisis experienced by the South Asian country then.
Md Mezbaul Haque, executive director and spokesperson of the Bangladesh Bank, on Monday said that the first payment from Sri Lanka was received on August 17.
He also said that Sri Lanka was expected to pay back another instalment by August 30.
The Bangladesh Bank foresees the repayment of the entire $200 million loan by September, he added.
Under the terms of a currency swap agreement, Bangladesh provided this monetary support to Sri Lanka in three distinct tranches.
The first tranche of $50 million was sent on August 19, the second instalment of $100 million on August 30 and the rest $50 million in September of 2021.
On August 19 in 2021, the BB released $50 million as the first tranche and another $100 million as the second instalment on August 30 in 2021 and the third tranche worth $50 million on September 21 in the same year.
The initial tenure of the currency swap agreement was set at three months while the agreement contained a rollover condition, allowing Sri Lanka to extend the period of repayment of the financing facility.
Source: New Age
--Agencies
