Bangladesh eyes $5b funds to tackle Covid-19 with record grant from Japan

Bangladesh government has already appealed to international aid agencies and foreign countries for funds worth $5 billion in loans and grants as assistance for the next three years to shield its economy and people from the coronavirus.

In next 2020-21 fiscal year budget, the finance division is likely to get promises of $1.73 billion from development partners and foreign countries which includes the biggest grant for Bangladesh amounting to one billion yen or $93,85,083 from the government of Japan.

An official of the finance division, who is involved with the budgeting process, said the Economic Relation Division is now in negotiations with its Japanese counterpart.

It is part of the next fiscal of foreign assistance of $1.73 billion for budget, the official said.

He also said, "We have expected $3.83 billion in foreign aid and assistance which is likely to channelled to the country in the next two fiscal years — 2021-22 and 2022-23."

Economic Relations Secretary Fatima Yasmin said, "We asked for support while planning our budget and battling against Covid-19."

Sources in the finance division said the government has only used 50 per cent of its quota of the International Monetary Fund (IMF) which is $732 million to soften the Covid-19 blow.

It will also request IMF for releasing the rest of the funds for next couple of fiscal years, sources said.

Meanwhile, the biggest Japanese grant aid for fighting against Covid-19 will be provided through a project titled 'Economic and Social Development Programme'.

ERD is also negotiating with the South Korean government for a $50 million loan for Bangladesh to fight against the deadly pandemic.

Meanwhile, the government and JICA are ready to sign the 41st official development assistance loan package worth $2.18 billion and the signing of the deal is scheduled for June.

The interest rate of JICA loan is 0.94 per cent. There are also a 0.01 per cent consultation service fee and a 0.02 per cent front-end fee. The loan must be repaid in 30 years with a 10-year rebate.

ask/wi