Bangladesh has reduced the amount of funds belonging to airlines that have been blocked from repatriation by $124 million over the last six months, the International Air Transport Association (IATA) said recently.
As of October 2024, the amount of blocked airline funds in Bangladesh stands at $196 million, down from $320 million in April 2024.
Despite the improvement, the country remains one of the top three nations globally in terms of blocked airline funds.
IATA urged Bangladesh Bank, the country’s central bank, to continue prioritising airlines’ access to foreign exchange in accordance with international treaty obligations.
The country remains one of the top three nations globally in terms of blocked airline funds
Globally, only a marginal improvement has been observed in blocked airline funds over the past six months, with the total amount decreasing from $1.8 billion in April 2024 to $1.7 billion in October 2024, according to IATA’s latest data.
“Significant reductions in blocked funds have been achieved in countries like Pakistan, Bangladesh, Algeria, and Ethiopia,” said Willie Walsh, director general of IATA.
“Governments must eliminate all barriers to repatriating airline revenues from ticket sales and other activities as per international agreements.”
Pakistan remains the largest offender, with $311 million in airline funds still blocked, an improvement from $411 million in April.
IATA attributed the delays to issues related to audit and tax exemption certificates.
Africa accounts for the majority of blocked airline funds globally, holding about $1 billion or 59 percent of the total.
Algeria reduced its blocked funds from $286 million in April to $193 million, while Ethiopia brought down its total from $149 million to $43 million during the same period.
Bolivia has recently joined the list of countries blocking airline funds, with $42 million reportedly blocked due to deteriorating foreign exchange availability, particularly US dollars.
“No country wants to lose aviation connectivity, which is crucial for driving economic prosperity. However, airlines cannot sustain operations if they cannot repatriate their revenues,” Walsh warned, emphasising that economies could suffer if aviation connectivity collapses.