Korea to provide $100m loan to Bangladesh
DHAKA, Dec 22 2021 (BSS) –
A loan agreement has been signed between
Bangladesh and Korea under which the Korean EXIM Bank would provide $100
million to Bangladesh as budget support.
The budget support will be provided against the “Program Loan for
Sustainable Economic Recovery Program (Subprogram1)” to mitigate the adverse
impact of COVID-19 pandemic.
Md Shahriar Kader Siddiky, Wing Chief and Additional Secretary of the
Economic Relations Division (ERD) and Kim Tae-soo, Executive Director of
Korea Exim Bank signed the agreement on behalf of the government of
Bangladesh and the government of the Republic of Korea respectively, said an
ERD press release today.
Since 1993, the Korean Exim Bank, on behalf of the Korean government, has
been providing soft loan to various priority development sector projects in
Bangladesh. Under this loan agreement, the Korea Exim Bank will provide
$100.00 million to implement the project.
The loan will bear simple interest rate of 0.05 percent per annum while
the maturity period will be 40 years including a grace period of 15 years.
The loan is aimed at recovering the economy by implementing various
reforms in revenue collection system and design schemes to support
entrepreneurs who have been adversely affected by the pandemic.
