China’s EXIM Bank has warned the Bangladesh-China Power Company Ltd (BCPCL) that its failure to repay a US$129 million loan instalment due in early December could trigger a formal default event, potentially affecting other projects in Bangladesh financed by the bank.
the bank issued the caution after the joint-venture operator of the Payra 1,320MW coal power plant repeatedly missed instalment deadlines over the past few years, officials said, raising concerns about its overall repayment capacity.
in response, BCPCL has sought urgent intervention from the Finance Division to avert a default and protect Bangladesh’s sovereign credibility in dealings with the Chinese lender.
the warning was issued in a recent letter from China’s EXIM Bank to BCPCL, which the company’s managing director subsequently forwarded to the Finance Division, urging appropriate steps to ensure timely repayment of the 10th instalment, due on 8 December.