Korea to provide $100m loan to Bangladesh

Korea will provide a $100 million loan to Bangladesh under the “Second Strengthening Social Resilience Programme, Sub-programme-1.”

In this regard, a loan agreement was signed on Monday between the government of Bangladesh and the Korea Exim Bank, read a press release.

Mirana Mahrukh, wing chief and additional secretary of the Economic Relations Division (ERD) and Hwang Kiyeon, executive director, Korea Exim Bank signed the loan agreement on behalf of their respective sides.

The Finance Division along with other relevant ministries has formulated the policy reform programme. The programme scope includes strengthening of social resilience and enhances the inclusiveness and responsiveness of social protection in Bangladesh.

Since 1993, on behalf of the Korean government, the Korea Exim Bank has been providing soft loans to various priority sector development projects in Bangladesh.

Under this loan agreement, this loan will bear a simple interest rate of 1 per cent per annum while the maturity period will be 25 years including a grace period of 7 years.