South Korea to loan $100m for Bangladesh's economic recovery

South Korea has said that it will provide $100 million in a collaborative effort with international lenders to assist Bangladesh in recovering from the pandemic's effects.

On Monday, the Economic Development Cooperation Fund (EDCF) of South Korea said it would provide low-interest loans for the $700 million collaborative initiative to help Bangladesh's economy, their finance ministry said.

The Asian Development Bank will provide $250 million, the Asian Infrastructure Investment Bank (AIIB) will contribute $250 million, and the OPEC Fund for International Development will contribute $100 million to the project, reports Korean Herald.

The EDCF and the AIIB are teaming together for the first time to fund an economic initiative in a developing country.

South Korea launched the EDCF programme in 1987 in an effort to help other developing countries with their basic infrastructure.