The Export Import Bank of the United States has approved a loan of $285 million to Biman Bangladesh Airlines for purchasing two Boeing-777-300ER aircraft, civil aviation and tourism minister Faruk Khan told New Age on Monday.
The board of directors of the bank made the decision at a meeting on October 31, said the minister.
The US bank approved the loan after the Bangladesh government in July provided the sovereign guarantee containing eight conditions.
The bank wanted the sovereign guarantee from the Bangladesh government as Biman had been incurring losses for many years.
‘Biman has been successful in getting the loan of around $285 million from US EXIM Bank for the purchase of two new Boeing-777-300ER aircraft, which are due for delivery in February and March, 2014,’ Biman managing director Kevin Steele confirmed New Age.
Asked about the mode of repaying the loan, Kevin said that Biman would repay the loan in 10 years.
‘If Biman fails to repay the loan, Boeing, the US aircraft manufacturer, could reclaim the aircraft,’ said Kevin.
‘But this is not going to happen as Biman would be repaying the loan on time,’ he affirmed.
‘For the last two years, we have been repaying the loans owed to them for two other Boeing-777-300ER aircraft,’ added Kevin.
Biman has already paid the Boeing around 20 per cent or $118 million of the total cost of the two aircraft in November 2012. Bangladesh Bank paid the money from its reserve through the UK branch of the Sonali Bank, said Biman officials.
Two of the major conditions are that Biman would have to continue its search for a strategic partner and send a quarterly development report on this matter to the ministry.
Besides, the national carrier will have to give corporate guarantee and set up an
individual fund for getting the sovereign guarantee.
Faruk Khan told New Age that Biman was trying to return to profit and had enhanced its punctuality.
‘The approval of US EXIM Bank proves that the bank relies on the economic development of Bangladesh,’ he added.
The minister said he expected Biman to be able to repay the loans.
Earlier, Biman signed a contract with the Boeing to purchase eight aircraft at a cost of Tk 8,728 crore in 2008.
Of them, four aircraft were of Boeing-777-300ER and the rest four were of Boeing-787-8 models.
Later, Biman ordered for another two Boeing-737-800 aircraft. The carrier took a syndicated loan at 4.57 per cent interest from nine local banks at that time.
Biman signed initial contract with the Boeing on March 15, 2011. On April 22 of the same year, Biman finalised the contract with the Boeing to procure 10 aircraft.
In accordance with the contract, the first two Boeing-777-300ER aircraft had been added to the Biman’s fleet in October and November in 2011.
According to the delivery order, the rest two Boeing-777-300ER aircraft were scheduled to be added to the fleet in November this year. But it is not possible before 2014 as Biman has just got the loan of $285 million and would pay the dues to the Boeing authorities soon. (source)