Korea to provide $90m to Bangladesh; deal signed

A Loan Agreement on "Climate Resilient Inclusive Development Program (Subprogram1)" amounting to $90.00 million was signed on Monday between the government of Bangladesh and Korea.

Md. Anwar Hossain, wing chief and additional secretary of the Economic Relations Division (ERD) and Hwang Kiyeon, executive director of Korea Eximbank, signed the loan agreement on behalf of the GoB and Korea Eximbank respectively, said a press release.

Finance Division along with other relevant ministries has formulated the policy reform program.

The Program scope includes mitigating greenhouse gas emissions and transition to a low-carbon economy, facilitating a sustainable and climate- focused development pathway and strengthening resilience and reduce risk and vulnerability to adverse climate change impact.

According to the loan agreement, the objectives of this programme have already been achieved. Since 1993, on behalf of the Korean Government, the Korea Eximbank has been providing soft loan to various priority development projects in Bangladesh.

Under this loan agreement, this loan will bear simple interest rate of 0.5 percent per annum while maturity period will be 25.5 years including a grace period of 7.5 years, reports BSS.