Japan to provide $225m loan as budget support to Bangladesh

Under the ‘Development Policy Loan for Strengthening Public Financial Management’, Japan will provide 30 billion Japanese Yen (equivalent to US$225 Million) as budget support to Bangladesh.

To this end, an “Exchange of Notes” and a “Loan Agreement” for the budget support loan under 44th Japanese ODA loan Package (1st batch) were signed today between the Government of Bangladesh and the Government of Japan at NEC conference room in the city, said a press release.

  Learn about the COVID-19 pandemic from News Hour  

On behalf of Bangladesh, Sharifa Khan, secretary, Economic Relations Division (ERD), Ministry of Finance, signed the documents. Meanwhile, Japan was represented by Iwama Kiminori, Ambassador of Japan in Bangladesh, and Ichiguchi Tomohide, Chief Representative, JICA Bangladesh Office.

This loan has a 1.6 percent interest rate and a 0.1 percent front end fee (per transaction). The payback duration is 30 years, with a 10-year grace period in between.

Previously, the Japanese government provided two further budget support loans totaling 685 million yen ($4.7 million) in 2020 and 2021.

Bangladesh’s single largest bilateral development partner is Japan.

Power, roads, bridges, telecommunications, agriculture, health, education, water supply and sanitation, rural development, environment, human resource development, and other fields have benefited from Japanese loans and grants. Japan has supplied Bangladesh with $30.12 billion in financial assistance since independence.

Follow News Hour

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments