A Loan Agreement for financing the “Strengthening Economic Management and Governance Program” was signed between the Government of the People’s Republic of Bangladesh and the OPEC Fund for International Development (OFID). Under this agreement, OFID will provide a loan of EUR 96.10 million (equivalent to US$ 100 million) as budgetary support.
Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, Government of Bangladesh, and H.E. Dr. Abdulhamid Alkhalifa, President of OFID, signed the agreement on behalf of their respective governments/authorities in Washington, D.C., USA.
The purpose of this loan is to provide budgetary support aimed at advancing macroeconomic financial reforms and improving governance and management. The loan will carry an interest rate of 6-month EURIBOR + 1.20% per annum on the amounts withdrawn and outstanding, with a maturity period of 18 years, including a 3-year grace period.
OFID has been a key development partner of Bangladesh since 1977-78, contributing significantly to the country’s growth. To date, OFID has provided US$ 793.61 million for 33 public sector development projects and US$ 310.21 million for private sector initiatives in Bangladesh.