The amount of airline funds blocked from being sent out of Bangladesh has dropped by $124 million in the last six months, according to the International Air Transport Association (IATA).
The blocked funds have reduced from $320 million in April to $196 million now. However, Bangladesh is still one of the top three countries blocking the most airline funds globally, says IATA, reports TBS.
IATA emphasized that central banks should continue to prioritize airlines' access to foreign currency, in line with international agreements.
Willie Walsh, IATA's director general, noted that over the past six months, blocked funds in countries like Pakistan, Bangladesh, Algeria, and Ethiopia have decreased significantly.
He urged governments to eliminate any barriers that prevent airlines from sending their earnings back home, as required by global treaties.
Walsh warned that if airlines can’t repatriate their funds, they won't be able to operate, which could negatively impact economies due to the loss of air connectivity.
He stressed that it’s crucial for everyone, including governments, to ensure airlines can easily repatriate their earnings.
The IATA reported that $1.7 billion in airline funds are blocked from repatriation by governments as of the end of October 2024.
This marks a slight improvement from the $1.8 billion reported in April.
Nine countries are responsible for 83% of these blocked funds, totaling $1.43 billion.
Since the Russia-Ukraine conflict started in February 2022, Bangladesh’s foreign exchange reserves have sharply declined. The reserves fell from over $40 billion to under $20 billion because of rising prices for commodities like food, energy, and fertilizer.
Furthermore, the value of the Bangladeshi taka fell by around 40%, from Tk86 per dollar to Tk117 following the war. The main reason for the delays in fund repatriation in Bangladesh is the shortage of US dollars.
Bd-pratidin English / Afia
