The government will seek USD $2 billion loan support from Islamic Trade and Finance Cooperation (ITFC).

A high-powered team, led by economic relations division secretary Iqbal Mahmud, will leave Dhaka for Jeddah today (Friday) to place the Bangladesh Petroleum Corporation (BPC) proposal at a dialogue with ITFC.

Bangladesh Petroleum Corporation (BPC) Chairman Md Abu Bakar Siddique told daily sun on Thursday.

BPC will procure nearly 700,000 tonnes petroleum fuels for the next calendar year.

“BPC is expected to borrow US$2 billion loan support from ITFC, a sister concern of Islamic Development Bank (IDB),” Abu Bakar said. The IDB has already supported over US $1.2 billion funds to BPC this year with interest rate between 5 percent and 5.5 percent, an official of the BPC said.

Due to frequent loss from high cost imported petroleum products and also for overdue bills, the BPC has been facing financial crisis to import the petroleum fuel this fiscal, sources said.

The BPC would require Tk 11:00 billion subsidy as it sales petroleum fuel in local market against paying high rates for importing those.

Source: The Daily Sun/ Bangladesh/ 9th Dec 2011