Govt to take $270m hard loan for Biman

Staff Correspondent | Published: 00:05, Jul 02,2018 | Updated: 19:29, Jul 03,2018

 
 

An aircraft of Biman Bangladesh Airlines.-- New Age file photo

The government is taking hard term loan worth $270 million from HSBC for buying to more aircrafts from Boeing.
The interest rate of the loan would be 7.2 per cent while repayment period is 12 years, said finance minister AMA Muhith at a briefing on Sunday.
Earlier, he endorsed a proposal from the loss making Bangladesh Biman to take the loan from the HSBC while presiding over a meeting of the hard term loan committee at his secretariat office.
Biman has been looking for the loan since January this year with the plan of adding two Boeing 787 Dreamliner aircraft to its fleet by November.
The Boeing 787 Dreamliner is a long-range, mid-size, wide-body, twin-engine jet airliner developed by Boeing Commercial Airplanes.
Biman has plans to add two more same types of aircraft by September 2019 as part of its deal with Boeing signed in 2008 to procure a total of 10 aircraft.
Currently, Biman has a 13-craft fleet which includes four 777-300ER, two 777-200ER, one A330-200, four 737-800 and two Dash8-Q400 aircraft.
According to the proposal to the hard term loan committee, Biman would spend the money to pre-delivery payment for the 787 Dreamliner.
Answering why the government was taking loan for the loss-making Biman, Muhith said aviation business was not profitable anywhere in the world.
‘You have to take the loan for the interest of the national airline,’ he added. 

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