The Asian Development Bank and Bangladesh government signed $500 million loan agreements on Monday to strengthen Bangladesh’s efforts to mitigate the socio-economic impact of COVID-19 pandemic.
Economic Relations Division secretary Fatima Yasmin and ADB country director Manmohan Parkash signed the loan agreements on behalf of Bangladesh and ADB, respectively.
ADB country director Manmohan Parkash said, ‘This assistance is all about lives and livelihoods. We are happy that this is being delivered when the country needs it the most. I am confident Bangladesh will return to its high economic growth path soon by successfully implementing its robust economic and fiscal measures to protect the poor and vulnerable including women, and cushion trade and businesses.’
The assistance package is expected to benefit over 15 million poor and vulnerable people in Bangladesh.
The assistance is part of ADB’s COVID-19 Active Response and Expenditure Support Programme, which is funded through the COVID-19 pandemic response option under ADB’s Countercyclical Support Facility.
Of the $500 million loans, $250 million comes from concessional ordinary capital resources with an interest charge at the rate of two per cent per year during the grace period and thereafter, for a term of 25 years, including a grace period of 5 years.
Another $250 million comes from the regular OCR fund with interest to be determined in accordance with ADB’s London interbank offered rate-based lending facility for a term of 15 years, including a grace period of 3 years.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members — 49 from the region.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Foreign affairs