Investor Presentaiton
Independent Review of
RBD Is Bangladesh Rolling Towards A Debt Stress?
Bangladesh's Development
Policy Perspective
Concerns for sustaining public debt due to new flow of foreign finance,
which are
1. Shorter maturity of these flows, entailing
greater debt service payment
2. "Tied" nature of foreign loans
3. Risk of currency mismatch
4. Unknown generation of Internal Rate of
Return
5. Maintaining quality, timeliness and good
governance in
implementation
debt-financed projects'
Likelihood of facing debt distress if projects fail to realise anticipated benefits
Significant portion of revenue expenditure already pledged to debt servicing
Necessity of devising Medium-Term Debt Management Policy regarding changes in
borrowing mix and nature of new foreign financial flows
CPD (2017): State of the Bangladesh Economy in FY2017 (First Reading)
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