BPC seeks funds to pay for imports

Bangladesh, desperately seeking funds to pay for fuel imports, said it expected to secure up to US$250 million from foreign banks following recent “road shows” held in Dubai and Bahrain. The government was looking for alternative sources to pay for fuel as Bangladesh Petroleum Corp. (BPC) faced a financial crisis, with total loss in the 2005-06 fiscal year to June likely to reach Tk 37 billion (US$569.23 million). The state-owned BPC suffered losses amounting to Tk 27 billion (US$415.38 million) last year due to the sale of petroleum products at subsidized rates. BPC, a subsidiary of Petrobangla, is now facing a liquidity crisis owing to non-payment of arrears amounting to Tk 9.0 billion (US$138.46 million) by large public sector corporations like Bangladesh Power Development Board (PDB), Biman Bangladesh Airlines, Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Railways (BR) and defense services organizations. Under a state-to-state deal signed in 2004, Bangladesh imports nearly 2.8 million tons of refined oil, including 1.6 million tons of diesel fuel, from Kuwait annually. (August 24, 2006)