Asian Infrastructure Investment Bank (AIIB) will provide $250 million or nearly Tk 25 billion loan to Bangladesh as budget support to help overcome present economic crisis.
The bank will start loan negotiation with Bangladesh this week and the finance ministry has already sent a summary of the loan deal to the Prime Minister’s Office (PMO), finance ministry sources said.
Bangladesh has sought budget support from the IMF, the World Bank, Asian Development bank (ADB) and some other development partners.
IMF will extend $4.5 billion loan support to Bangladesh to fix balance of payment (BOP) problem. The loan will be available in seven installments with first installment coming in February.
Besides, the government has sought $500 million from the World Bank, but the agency has not yet confirmed when the loan will be available. In addition, ADB is giving $250 million loan as budget support.
The AIIB’s $250 million will bear 3 percent interest, which will have to be repaid in 20 years, including three years grace period. The AIIB’s loan will be utilized for economic recovery.
Economic Relations Division (ERD) has already taken necessary preparation for signing the loan contract, ERD officials said, adding that the credit deal will be signed after getting PMO’s approval.
