The Japan International Cooperation Agency (JICA) and the Economic Relations Division (ERD) on Tuesday signed a loan agreement worth 3,000 crore Japanese Yen, equivalent to Tk 2,273 crore.
This agreement represents Japanese official development assistance in the form of loans, aimed at strengthening public financial management in Bangladesh.
The signing took place at the NEC-2 Conference Room in Dhaka's Sher-e-Bangla Nagar.
Secretary of the Economic Relations Division, Sharifa Khan, and Chief Representative of JICA Bangladesh, Ichiguchi Tomohide, signed the agreement in the presence of Japanese Ambassador to Bangladesh, Iwama Kiminori, said a press release.
This budget support loan, to be disbursed swiftly, is intended to contribute to the economic recovery of Bangladesh.
The development policy programme associated with this loan aims to enhance public financial management capacity by boosting revenue generation and improving expenditure management within the Bangladesh government. The loan carries an annual interest rate of 1.6 per cent, with a 30-year repayment period that includes a 10-year grace period.
Over the years, Japan has remained Bangladesh's largest bilateral development partner.
This financial assistance reinforces their commitment to supporting the country's development initiatives for the betterment of its people and government.
Chief Representative of JICA Bangladesh, Ichiguchi Tomohide, said, “The signing of this loan agreement is crucial to support economic recovery, sustainable and inclusive growth for the people of Bangladesh. The fund will help in meeting the government’s budgetary needs, prop up foreign exchange reserves and give impetus to the reform plans.”
