Fitch Cuts Bangladesh’s Outlook to Negative as Reserves Decline

[Black_cats]

Fitch Cuts Bangladesh’s Outlook to Negative as Reserves Decline​

Karl Lester M. Yap, Bloomberg News

People browse battery and solar powered hand fans in Dhaka, Bangladesh, on Tuesday, Aug. 9, 2022. Bangladesh recently announced as much as 52% rise fuel oil prices, a record jump for the nation, sparking street protests. The power crisis was made worse after volatile global prices forced Bangladesh out of the spot market for liquefied natural gas cargoes. Photographer:

ANIK RAHMAN/Bloomberg , Bloomberg
(Bloomberg) -- Bangladesh’s sovereign rating outlook was cut by Fitch Ratings to negative from stable as declining reserves and a squeeze in dollar liquidity increased the South Asian nation’s vulnerability to shocks.

Fitch joins S&P Global Ratings in downgrading the outlook on Bangladesh even after the South Asian country secured a $4.7 billion bailout from the International Monetary Fund in January. Moody’s Investors Service cut Bangladesh’s credit rating in May.

Fitch Cuts Bangladesh’s Outlook to Negative as Reserves Decline - BNN Bloomberg

Bangladesh’s sovereign rating outlook was cut by Fitch Ratings to negative from stable as declining reserves and a squeeze in dollar liquidity increased the South Asian nation’s vulnerability to shocks.

www.bnnbloomberg.ca

 

[protean]

Fitch Cuts Bangladesh’s Outlook to Negative as Reserves Decline​

Karl Lester M. Yap, Bloomberg News

People browse battery and solar powered hand fans in Dhaka, Bangladesh, on Tuesday, Aug. 9, 2022. Bangladesh recently announced as much as 52% rise fuel oil prices, a record jump for the nation, sparking street protests. The power crisis was made worse after volatile global prices forced Bangladesh out of the spot market for liquefied natural gas cargoes. Photographer:

ANIK RAHMAN/Bloomberg , Bloomberg
(Bloomberg) -- Bangladesh’s sovereign rating outlook was cut by Fitch Ratings to negative from stable as declining reserves and a squeeze in dollar liquidity increased the South Asian nation’s vulnerability to shocks.

Fitch joins S&P Global Ratings in downgrading the outlook on Bangladesh even after the South Asian country secured a $4.7 billion bailout from the International Monetary Fund in January. Moody’s Investors Service cut Bangladesh’s credit rating in May.

Fitch Cuts Bangladesh’s Outlook to Negative as Reserves Decline - BNN Bloomberg

Bangladesh’s sovereign rating outlook was cut by Fitch Ratings to negative from stable as declining reserves and a squeeze in dollar liquidity increased the South Asian nation’s vulnerability to shocks.

www.bnnbloomberg.ca

Bangladesh going Pakistan way for sure.

 

[saif]

Bangladesh going Pakistan way for sure.

Kudos to your aunty Hasina

 

[@blue Ocean]

Bangladesh going Pakistan way for sure.

This is the result of borrowing money from other countries, steal a part of it and let foreign companies eat away the pie making the country hollow.

Here, I find some stupid guy crying for Chinese money all the time to build up Ganges and Tista barrages as if the money is free.

This type of people are also at the top govt echelon who have made BD hollow of strength.

What you borrow must be repaid. BD is unable to do that and as a result, the FER is coming down. Now, it is nearly $20 billion only.

In a situation like this, American govt has frozen $10 billion held by Joy Kumar and sent by his Great Mother.

No wonder, BD economy is getting negative rating. It is certainly going Pakistan way. The same style of borrowing and stealing. Bloody shameless leadership.

 

[saif]

If the loan money is invested in projects which generate revenue then it does not hamper the overall economic growth.

 

[protean]

If the loan money is invested in projects which generate revenue then it does not hamper the overall economic growth.

Did you see any revenue growth that matches this claim over these years? Tax to GDP ratio is at 7% and India's at 19-20% and growing. How come then you say that these projects are any good. They are there to loot.

 

[@blue Ocean]

Did you see any revenue growth that matches this claim over these years? Tax to GDP ratio is at 7% and India's at 19-20% and growing. How come then you say that these projects are any good. They are there to loot.

Please note that some are born with a weak brain for the math. However you try he won’t grasp it.

These people think China is sooooooo rich that it needs no money back. It will ask Uncle Sam to send another printing machine for China to keep on printing money.

It is just the opposite. Chinese interest rate is above 3% per year. For a $10,000 million loan repayable in 20 years, the math is almost as given below:

1st year; the repayment value is, $500 million Principal money + interest $300 million.. Interest goes down every year and so the average interest is $150 million per year in average.

In twenty years, BD will be paying $3000 million in total interest plus $10,000 million of loan money. The interest itself is $3000 million.

BD is already bankrupt and some illiterate guy is proposing to build Ganges and Tista Barrages with borrowed Chinese money as if this money will lay golden eggs.

BD should build any such projects by its own engineering manpower instead of relying on China, and should buy hundreds of construction machines from Japan.

Chinese or any such direct loans are a trap.

 

[saif]

How come then you say that these projects are any good. They are there to loot.

Looting is being done by your Hasina aunty not by China. So, claiming Chinese loans are bad is not correct.

 

[protean]

Looting is being done by your Hasina aunty not by China. So, claiming Chinese loans are bad is not correct.

Chinese are famous for promoting corrupt leaders with all the deals that are actually in their favor. It is easy to manipulate by providing them cheap handouts and saddle a country with unnecessary loans. You need a government that has people's interest at hearts while dealing with China. Hasina is good too, she faked the GDP to bring in some developmental funds but all the fakeness is coming undone since going to IMF. Net forex reserves are now at less than $18 billion (gross $21.4 billion). Debt in itself is not bad but it should always be a function of repayment capacity. There is not enough forex reserves for servicing the external debt. Hence all the ratings downgrade by agencies. There is not much revenue coming domestically to continue with the wanted projects. Bangladesh is done for. It is definitely is where Pakistan was at in 2013-18 period, when it ratched up taking quick external debt.

World is waiting for you to graduate out of LDC, then they would call you out big time on your fake GDP.

 

[@blue Ocean]

World is waiting for you to graduate out of LDC, then they would call you out big time on your fake GDP.

Hasina was cooking fake GDP figures to look good to others. A very cheap stunt.

A country's GDP growth can be achieved by putting money in industries, giving employment there, creating more value-added goods there and collecting more tax money from these activities.

Nothing that sort happening in BD. BD cannot even produce a simple irrigation pump. The tax to GDP ratio is below 9%. This shows the real GDP is much lower than Hasina wants our ignorant people to believe.

If this 9% tax volume is changed to a more acceptable 15%, the GDP goes down to $240 billion from $400 billion. This $240 billion figure is a more realistic GDP figure.

Hasina thought a change in status to a developing one would make her a super leader. She has very little knowledge on economy. She was a very bad student.

 

[Cheepek]

If the loan money is invested in projects which generate revenue then it does not hamper the overall economic growth.

 

[Abu Shaleh Rumi]

Another Awami League term Bangladesh will become Srilanka.
.
I miss M. Saifur Rahman. This guy delivered real growth and reforms. May Allah award him Jannatul Firdaus.

 

[IndianLite]

This is the result of borrowing money from other countries, steal a part of it and let foreign companies eat away the pie making the country hollow.

Here, I find some stupid guy crying for Chinese money all the time to build up Ganges and Tista barrages as if the money is free.

This type of people are also at the top govt echelon who have made BD hollow of strength.

What you borrow must be repaid. BD is unable to do that and as a result, the FER is coming down. Now, it is nearly $20 billion only.

In a situation like this, American govt has frozen $10 billion held by Joy Kumar and sent by his Great Mother.

No wonder, BD economy is getting negative rating. It is certainly going Pakistan way. The same style of borrowing and stealing. Bloody shameless leadership.

10 billion

Future BD government will be flush with money.

No need to worry about future.

 

[RealDeal]

India should colonize bangladesh and use it for raw materials and labor. Lungis can be captured and sent to build railroad and other infra along lac- like did Russians in siberian gulag.

 

[ghost250]

India should colonize bangladesh and use it for raw materials and labor. Lungis can be captured and sent to build railroad and other infra along lac- like did Russians in siberian gulag.

so that rendis can defecate more beside railroads? hala kamlachoda rendi,vaat pay na dui bela,aise colonize korte..ay, putki diya voira dimu...