Bangladesh signs $100m loan deal with South Korea
Mohammad Shahriar Kader Siddiky, deputy secretary of Bangladesh’s economic relations division, and Kim Tae Soo, executive director of the South Korean bank, recently signed an agreement in this regard.
The maturity period of the loan is 40 years including a 15-year grace period, according to Bangladeshi media.
South Korea will offer $100 million in concessional loans to Bangladesh from the Economic Development Cooperation Fund (EDCF) to help the latter recover from the pandemic. EDCF is a Korean development finance program aimed at assisting the socio-economic development of developing countries. The amount will be disbursed this month by Korea Exim Bank.
South Korea has already provided $50 million EDCF loan as budget support in December 2020 to help Bangladesh’s efforts in the fight against the COVID-19 pandemic. This is the second provision of this type of concessional loan.
Bangladesh is the second largest recipient of EDCF loans in the world by aggregate amount.
So far, the Republic of Korea has funded 24 Bangladesh development projects totaling $1.2 billion through EDCF.
Fibre2Fashion (DS) News Desk