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The Asian Infrastructure Investment Bank (AIIB) is set to provide $250 million loan for Bangladesh’s economic recovery from the fallout induced by the Covid-19 pandemic.
Fatima Yasmin, secretary of the Economic Relations Division, and DJ Pandian, vice president for investment operations region 1 of AIIB, signed the loan agreement virtually on behalf of Bangladesh and AIIB respectively on November 2.
The loan will be used for the implementation of “Sustainable Economic Recovery Program (Subprogram-1),” taken by the government with the aim of bringing policy reform to recover the country’s economy from the harmful effects of Covid-19 and to sustain sustainable growth, it said.
The lead financier of the programme is the Asian Development Bank (ADB) and AIIB is contributing $250 million as the co-financier.
Under this programme, steps will be taken to reduce and rationalise expenditure by reforming and strengthening the Public Finance Management system and to expand financial resources, according to the ministry.
The programme also aims to create financing opportunities for industries and entrepreneurs such as small, medium and cottage industries whose sources of funding are insufficient, it said.
The repayment period of the loan is 20 years including three years grace period. The payable frontend fee is 0.25 per cent and commitment fee is 0.25 per cent per annum for undisbursed amount.
(TDS)
