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Budget Support

Bangladesh, AIIB sign $250m loan deal

  • Staff Correspondent
  • 8 December, 2022 12:00 AM
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Bangladesh, AIIB sign $250m loan deal

Bangladesh government and Asian Infrastructure Investment Bank (AIIB) signed a loan agreement of $250 million as a budget support to help overcome the present economic crisis the country is going through.  

The deal was signed for the “Strengthening Social Resilience Programme (Subprogramme 2).”

Economic Relations Division (ERD) Secretary Sharifa Khan and Vice President of Investment Operations Region 1 Urjit R. Patel inked the deal on behalf of the government and the AIIB respectively.

The Finance Division has taken the programme and its principal objective is to improve the inclusiveness and responsiveness of social development in Bangladesh.

The scope includes: improving the coverage and efficiency of social protection; improving financial inclusion of disadvantaged people; and strengthening responses to lifecycle social and health needs.

The loan will be received in standard terms and conditions of AIIB. The repayment period of the loan is 26.5 years including 3 years grace period.

AIIB started its journey in 2016 and in the last five years AIIB’s investment in Bangladesh is $2.79 billion.

In the last three financial years, Bangladesh received $800 million from AIIB as budget support to combat COVID-19 pandemic, make government-declared stimulus packages and strengthen the post-COVID economy.

After having the current agreement signed, the figure now stands at $1,050 million.