Monday, 23 May, 2022

OPEC Fund to provide $75m budget support

  • Staff Correspondent
  • 15 February, 2022 12:00 AM
  • Print news

OPEC Fund for International Development (OFID) will provide $75 million loans to Bangladesh as budget support for economic recovery from the Covid fallout.

In this regard, OFID and the government signed a loan agreement at Economic Relations Division (ERD) on Monday, says a release.

The money will be utilised for “Sustainable Economic Recovery Programme (SERP)”

ERD Secretary Fatima Yasmin and OFID Director-General Dr Abdulhamid Alkhalifa signed the agreement on behalf of their respective sides. 

The purpose of the loan is to provide budgetary support which will be used to implement urgent reforms to facilitate rapid recovery from the COVID-19 pandemic.

It will be utilized to create fiscal space to support critical public expenditure; and (b) a favorable environment to foster the growth of Cottage, Micro, Small and Medium-sized Enterprises (CMSMEs).

The assistance is expected to generate employment and income opportunities.

The loan shall bear interest at the rate of 1.35 percent per annum and shall carry a commitment fee charge of 0.25 percent per annum, front-end fee 0.25 percent and shall have a maturity of 20 years including a grace period of 5 years.

OFID is one of the largest development partners of Bangladesh. It has been providing economic assistance to Bangladesh for the development programme or project, particularly in the area of road transport and power sector since the financial year of 1974-75.

So far, OFID has provided development assistance of 552.61 Million US$ to Bangladesh in 30 development projects.