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Green climate fund increasing country's debt burden: TIB

Rtv news

  14 May 2024, 23:09

Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman has said that the burden of repayment is increasing on climate affected countries like Bangladesh for providing more loans against grants.

The Green Climate Fund (GCF) is increasing a debt burden on vulnerable countries, including Bangladesh, he added.

He said this at a press conference at TIB office in Dhanmondi on Tuesday (May14).

TIB researchers Newazul Mawla and Shahidul Islam presented the findings of Transparency International Bangladesh's research titled 'Accessibility of vulnerable countries like Bangladesh to the Green Climate Fund: Good governance challenges and ways to overcome'.

Iftekharuzzaman said the role of the Green Climate Fund (GSF) in a decade is disappointing. Climate-affected countries like Bangladesh are increasingly burdened with debt repayment due to more loans against grants.

"The GSF does not have the infrastructure to be accountable. The company is violating its own policies and discriminating against it. Besides, there are allegations of various irregularities and corruption against them. Most of the money that Bangladesh needs is supposed to come through GSF. Climate affected countries are not benefiting. Rather, they are funding more from international organizations; Which is totally unacceptable.

According to the report, the GSF loan money has to be repaid with interest in foreign currency. Which increases the external debt burden of the borrowing countries. This puts pressure on local currencies and additional pressure on climate-vulnerable countries.

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