Bangladesh 

Bangladesh country policy

Policy established 30 December 2010

• ILC, bank guarantee or central public guarantee (conditional)
• The country ceiling is 1000 mln euro
• Early warning signal 150 mln euro
• - of which was used as at 2011-08-31 0 mln euro

Country class: 6

Good governance control

Bangladesh country facts

Atradius DSB Economic Research
Country Report last updated :  26 November 2009
Country :  BANGLADESH 

Political Situation
Democracy Restored

Head of state
President Mohammad Zillur Rahman (AL), PM Ms. Sheikh Hasina Wajed (AL)

Form of government
Government of a 14-paty grand coalition led by the AL 
 
Internal Economic Situation
Economy Resilient To Global Recession

General situation
Bangladesh' economic performance has been quite favourable in the past years. The economy has shown impressive growth figures but is overly dependant on agriculture while its external sector depends on textiles, remittances and development aid. The current global economic downturn has affected economic growth to a smaller extend than was feared. A bumper harvest has largely compensated for the lower demand for textiles. Income from remittances has proven resilient. Inflows of foreign development aid are expected to remain stable. Structural obstacles for the economy include: periodic floods, poor infrastructure (power, ports, roads), red tape, civil unrest and pervasive corruption. Weak, but gradually improving, banking sector. High level of NPL’s (13%), inadequate credit management and poor supervision, however exposure to foreign credit is limited.  In particular the state-owned commercial banks and development banks are in poor condition. Since mid-2003 the taka is floating. From 2007 the taka has proven rather stable against the $.

External Economic Situation
Lower Demand For Textiles

Main sources of foreign exchange
Textiles (66% of merchandise exports), workers remittances, donor support.

Main foreign markets
EU 43% (Germany 12%, UK 10%, France 5%), US 24%.

Main expenses of foreign exchange
Raw materials & semi-finished products for textile industry, capital goods, petroleum.

Balance of payments 
Inflows of donor financing and in particular remittances of workers abroad have a great impact on the current account.