Russia has demanded that Bangladesh pay $630 million in outstanding and current interest on a $12.65 billion loan for the Rooppur Nuclear Power Plant by September 15. The loan, carrying a maximum interest rate of 4% and a 2.4% penalty for overdue payments, requires settlement in US dollars or Chinese yuan through the Bank of China. Due to US sanctions on Russian banks, Bangladesh has faced challenges in making payments, which could lead to further penalties and complicate the negotiation for a two-year extension on the loan disbursement term, set to expire in December. The delay in payments could also impact the construction timeline of the power plant, which is crucial for generating electricity by December. Bangladesh is exploring options to resolve the payment issue and extend the loan term, but Russia’s response remains pending.
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