AIIB to provide $250m budget support

The Asian Infrastructure Investment Bank (AIIB) will provide $250 million to Bangladesh as budget support for social resilience programme.

The Economic Relations Division (ERD) and AIIB signed a loan agreement in this regard at ERD office in the capital on Wednesday.

ERD Secretary Sharifa Khan and AIIB Vice-president (Investment Operations Region) Urjit R Patel signed the agreement, said a press release.

The budget support will be used for Strengthening Social Resilience Programme (Sub Programme 2) of the government being implemented by the Finance Division. The principal objective of the programme is to improve the inclusiveness and responsiveness of social development in Bangladesh.

The programme aims to expand the coverage and improve the efficiency of social protection, increasing financial inclusion of disadvantaged people and strengthening responses to social and health needs.

AIIB started its journey in 2016 and in last five years the global bank invested a total of $2.79 billion in Bangladesh.

In the last three financial years, Bangladesh received $800 million budget support from AIIB to combat Covid pandemic through the government-declared stimulus packages as well as to strengthen the post-pandemic economy.

After signing the loan agreement, now AIIB’s budget support to Bangladesh stands at $1,050 million.

The loan will be received in standard terms and conditions of AIIB. The repayment period of the loan is 26.5 years including 3 years grace period.