OPEC Fund to provide budgetary support loan of $75m
The loan will be used to implement urgent reforms to facilitate rapid recovery from the Covid-19 pandemic
A budgetary support loan agreement for financing the 'Sustainable Economic Recovery Programme (SERP)' was signed Monday between the government and the OPEC Fund for International Development (OFID).
Under the agreement, OPEC Fund would provide a loan of $75 million as budgetary support.
The interest rate of the loan is 1.35% per annum with a commitment fee of 0.25% per annum, front-end fee 0.25% and a maturity of 20 years including a grace period of five years.
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Fatima Yasmin, secretary, economic relations division and Abdulhamid Alkhalifa, director-general, OFID, signed the agreement on behalf of their respective organisations.
The loan would be used to implement urgent reforms to facilitate rapid recovery from the Covid-19 pandemic, specifically by creating fiscal space to support critical public expenditure; and a favorable environment to foster the growth of cottage, micro, small and medium-sized enterprises, thereby generating employment and income opportunities.
The OFID is one of the largest development partners of Bangladesh. It has been providing economic assistance to Bangladesh for the development programme/project, particularly in the area of road transport and power sector since the financial year of 1974-75. So far, OFID has provided development assistance of $552.61 million to Bangladesh in 30 development projects.
