Bangladesh's efforts to clear debts of more than $1 billion owed to Indian power companies are being hampered by its inability to access the dollars it requires to pay them, documents showed and sources familiar with the matter said.
The country has been struggling to pay its bills due to costly fuel and goods imports since the 2022 war in Ukraine, while political turmoil which led to the ouster of Prime Minister Sheikh Hasina in August has added to its troubles.
Bangladesh is urgently seeking $5 billion in financial aid from international lenders to stabilise its dwindling foreign exchange reserves and its central bank has raised key interest rates to tame soaring inflation. Last year, it sought a $4.7 billion bailout from the International Monetary Fund.
"Efforts are on to clear the outstanding payments, but the current dollar crisis is complicating the process significantly," an official at the Bangladesh Power Development Board (BPDB) told Reuters on Friday.
Of the more than $1 billion owed to India's power companies, some $800 million is to Adani Power, he added.
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