Islamic Development Bank to provide $1.6b loan for oil import

[idune]

IDB to provide $1.6b loan for oil import

The Islamic Development Bank (IDB) has agreed to provide US$ 1.6 billion loan to Bangladesh to import petroleum products for the next fiscal (2010-2011). The assurance came following a meeting between the team led by Bangladesh Bank Governor Atiur Rahman and senior officials of IDB in Jeddah, Saudi Arabia. The team visited Jeddah from 10-16 December for the negotiation. Bangladesh imports around 3.5 million tons of oil every year at a cost of US$ 2.5 to $3.5 billion.

— BSS

IDB to provide $1.6b loan for oil import

 

[TopCat]

IDB to provide $1.6b loan for oil import

The Islamic Development Bank (IDB) has agreed to provide US$ 1.6 billion loan to Bangladesh to import petroleum products for the next fiscal (2010-2011). The assurance came following a meeting between the team led by Bangladesh Bank Governor Atiur Rahman and senior officials of IDB in Jeddah, Saudi Arabia. The team visited Jeddah from 10-16 December for the negotiation. Bangladesh imports around 3.5 million tons of oil every year at a cost of US$ 2.5 to $3.5 billion.

— BSS

IDB to provide $1.6b loan for oil import

MOD should move that to Bangladesh Economy Section...


hehehehehehehe

 

[scrumpy]

Being an Islamic Development Bank, does it mean no interest?

 

[TopCat]

Its not a Islamic bank. It does charge interest.

 

[idune]

Being an Islamic Development Bank, does it mean no interest?

IDB is serving Muslim countries thus named Islamic Development Banks. IDB has been financing lion share of Bangladesh energy import. Over billion dolars each year for last few years but does not make big fuss like india and indians are making.

 

[eastwatch]

It is very natural that a Bank finances a big purchase from its own country. In case of IDB it looks after the interest of many oil-producing Muslim countries. But, no Arab will come to this Forum to brag over this loan.

This is quite contrary to the way many immatured Indians would behave. Indians think that a private Indian Bank's $1 billion is a free gift and we do not have to pay it back. In reality, it is a TIED loan, it means that we will be purchasing Indian goods and services within the limit of this loan, and also we will be paying the Bank interests.