ADB to provide $500m loan to Bangladesh as budgetary support
The Asian Development Bank (ADB) is set to provide budgetary support worth $500 million to Bangladesh this fiscal for its economic recovery.
The budget support will also support the government agendas to accelerate implementations of policies on climate change, said the bank’s country director Edimon Ginting.
He made the statement following a meeting with Planning Minister MA Mannan at the latter’s office at Sher-e-Bangla Nagar in Dhaka on Thursday.
Apart from the project support, the government has now become interested to receive budgetary support. The advantages of the budgetary support is that the loan can be spent in any sector, while the cash dollar enters the government’s account.
Ginting said, “Challenges coming from global uncertainty have affected the economy slightly but I think the country is managing it well.”
After the meeting, Planning Minister MA Mannan said he was very pleased with the decision and the loan will be helpful in rehabilitation of the flood-affected population.
About the interest rate of the loan, the ADB country director said for now it was fixed at 0.5%.
Bangladesh will have a grace period of three years and the country will get 15 years to repay the loan.
However, both the ADB country director as well as the planning minister said that the terms of the loan were not yet concrete. There might be some alterations following discussions regarding the matter.