Govt signs deal with AIIB for ‘Sustainable Economic Recovery Programme’
The program undertaken by the Finance Division aims for policy reform to restore the country's economy from the impact of Covid and to maintain sustainable growth
The government of Bangladesh has signed a loan agreement of $250 million with the Asian Infrastructure Investment Bank (AIIB) to implement the 'Sustainable Economic Recovery Program' (Subprogram-1).
Fatima Yasmin, secretary Economic Relations Division, and DJ Pandian, vice president, Investment Operations Region 1, signed the loan agreement virtually, online on 02 November 2021, on behalf of the government of Bangladesh and AIIB respectively.
The Sustainable Economic Recovery Program undertaken by the Finance Division is aimed at bringing policy reform to recover the country's economy from the impact of Covid and to maintain sustainable growth. The lead financier of the Programme is the Asian Development Bank (ADB) while the AIIB is contributing USD250 million as a co-financier.
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Under this programme, steps will be taken to reduce and rationalise expenditure by reforming and strengthening the Public Finance Management (PFM) system and to expand financial resources.
The programme also aims to create financing opportunities for small, medium, and cottage industry entrepreneurs, with inadequate funding sources.
The $250 million loan will be disbursed on standard AIIB terms and conditions. The loan repayment period is 20 years, including a 3 year grace period. The payable front-end fee is 0.25% and the commitment fee is 0.25% per annum for any undisbursed amount.
