8/8/2024–|Last update: 8/8/202401:38 PM (Makkah Time)
I announced Standard & Poor’s For credit rating that the political crisis in Bangladesh May increase the negative risks to Economic growth The country’s financial performance and external indicators.
In a statement issued on Wednesday, the agency indicated that “the damage to credit indicators may be limited if social and political conditions return to normal soon” following the escape and resignation of the prime minister. Sheikh Hasina.
With cash reserves declining, Standard & Poor’s said it does not expect strong pressure on credit ratings at this time.
Credit rating downgrade
According to Bloomberg, the agency lowered Bangladesh’s credit rating to “BB-” last July due to the continued decline in foreign exchange reserves.
At the end of June, Bangladesh’s reserves stood at $21.78 billion, enough to cover three months of imports, according to Bloomberg.
Bloomberg notes that if the unrest continues, exports could be much lower than expected, which would have a long-term impact on Bangladesh’s external balance sheet and further erode the central bank’s reserves, Standard & Poor’s said Thursday.
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Sheikh Hasina resigned and left the country after about 250 people were killed in protests that began over a quota system for government jobs and morphed into a movement demanding her resignation.
The Economic Relations Department of the Bangladeshi Ministry of Finance said that The World Bank It disbursed the highest amount of loans as a foreign lender to Bangladesh at around $2.85 billion for various projects in the last fiscal year, Financial Express reported.
The department stated in a recently issued report that: Asian Development Bank The second highest loan value was disbursed, totaling $2.13 billion, and was Japan It has the third highest loan amount of $1.91 billion this year.
