S Korea to provide $100m budget support to Bangladesh
The loan will bear a simple interest rate of 1.0% per annum while the maturity period will be 25 years including a grace period of 7 years
South Korea will provide $100 million budget support to Bangladesh in the upcoming fiscal year 2024-25 (FY25).
To this end, the Bangladesh government signed a loan agreement on "Second Strengthening Social Resilience Program, Subprogram-1" with Korea Eximbank on Monday (24 June), reads a press statement issued by the Economic Relations Division (ERD) .
Under the agreement, this loan will bear a simple interest rate of 1.0% per annum while the maturity period will be 25 years including a grace period of 7 years, states the press statement.
Keep updated, follow The Business Standard's Google news channel
Mirana Mahrukh, wing chief and additional secretary of the ERD, and Hwang Kiyeon, executive director of Korea Eximbank signed the loan agreement on behalf of their respective parties.
Earlier in December of the current fiscal year, S Korea provided $90 million in budget support.
The Finance Division along with other relevant ministries has formulated the policy reform programme.
"The programme scope includes strengthening social resilience and enhancing the inclusiveness and responsiveness of social protection in Bangladesh," the ERD said.
