AIIB to provide $400m to Bangladesh as budget support; deal signed

The Asian Infrastructure Investment Bank (AIIB) will provide $400 million to Bangladesh as budget support for implementing the 'Climate Resilient Inclusive Development Program- Subprogram1'.

In this regard, the government of Bangladesh signed a loan agreement of $400 million (JPY 62,773,999,681) as budget support with the AIIB on June 27 to implement the 'Climate Resilient Inclusive Development Program- Subprogram1'.

Mirana Mahrukh, Additional Secretary, Economic Relations Division (ERD) and Rajat Misra, Acting Vice President, Public Sector Clients Department, Region 1, signed the loan agreement on behalf of Bangladesh and the AIIB respectively, reports BSS.

This Program has been taken by the Finance Division. The scope of the Program includes the following reform areas: (a) creating an enabling environment for implementing climate priorities across ministries; (b) facilitation of climate adaptation priorities; and (c) accelerating climate change mitigation actions.

The loan will be received in the standard terms and conditions of AIIB. The maturity period of the loan is 25 years including a grace period of five years.

The interest rate of the loan is Reference Rate Variable Spread and Front-End Fee is 0.25 percent.