The International Air Transport Association (IATA) reported that Around USD$196 million in airline funds are blocked from repatriation by Bangladesh as of end of October 2024.
It was part of the $1.7 billion in airline funds that are blocked from repatriation by governments during the same period.
This is a small improvement compared to the $1.8 billion reported at the end of April.
The amount in airlines fund blocked by Bangladesh equivalent of 47 months, the IATA report said.
Bangladesh has seen the amount of blocked funds decrease to $196 million from $320 million in April, the report also said.
“The Central Bank needs to continue to prioritize airlines’ access to foreign exchange in line with international treated obligations,” the IATA recommended.
“Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria and Ethiopia,” said Willie Walsh, IATA’s Director General at the report.
At the same time, amounts are rising in the XAF /XOF zones and Mozambique. Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines, he said. This unfortunate game of ‘whack-a-mole’ is unacceptable. Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations,” said Willie Walsh, IATA’s Director General.
“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly,” said Walsh.
Nine countries account for 83% of the airline industry’s blocked funds, amounting to $1.43 billion.
