Bangladesh gets $2.2 bln in loans from IDB for oil imports

Last Updated: Thu, Feb 14, 2013 08:00 hrs

DHAKA, Feb 14 (Reuters) - Bangladesh is to get $2.2 billion in loans from the Islamic Development Bank in 2013 to help finance its growing oil imports, officials said on Thursday.

The IDB will provide $1.35 billion of the total at 4.65 percent interest, down from last year's 5 percent, a senior energy ministry official said. The rest will be a rollover loan for $850 million with 5 percent interest, down from 5.3 percent.

Last year, the IDB provided $2.6 billion in loans to Bangladesh for oil imports.

Bangladesh's imports of oil are likely to rise to 5.7 million tonnes in the 2013 year from nearly 5.4 million tonnes last year, according to the energy ministry.

Bangladesh Petroleum Corporation (BPC), the country's sole oil importer and distributor, has finalised first half 2013 term contracts for refined oil products at mostly stronger premiums than previous deals.

Bangladesh buys refined oil products from a number of national oil companies including Malaysia's Petronas, PetroChina, Philippines National Oil Company (PNOC), Kuwait Petroleum Corporation (KPC), Emirates National Oil Company (ENOC), Egypt's Middle East Oil Refinery and Vietnam's Petrolimex.

BPC will also buy 700,000 tonnes of Murban crude from Abu Dhabi National Oil Company and another 700,000 tonnes of Arab Light crude from Saudi Aramco in 2013 for its sole refinery.

($1 = 79 taka) (Reporting by Ruma Paul; Editing by Tom Hogue)

More from Sify: