An agreement on "Program Loan for Sustainable Economic Recovery Program (Subprogram)" has been signed between Bangladesh and Korea to provide budget support to mitigate the adverse impact of Covid-19.
Under the agreement, the Korea Eximbank will provide $100.00 million to Bangladesh government to implement the project.
The loan will bear simple interest rate of 0.05% per annum while maturity period will be 40 years, including a grace period of 15 years.
The loan is aimed at recovering the economy by implementing various reforms in revenue collection system and design schemes to support entrepreneurs who have been adversely affected by Covid-19.
Md Shahriar Kader Siddiky, wing chief and additional secretary of the Economic Relations Division and Kim Tae-soo, Executive director of Korea Eximbank signed the agreement on behalf of respective governments.
Since 1993, the Korea Eximbank has been providing soft loans to various priority development sector projects in Bangladesh.