Japan and Bangladesh on Tuesday signed a loan agreement of USD $225 million as budgetary support for the latter's economic recovery and strengthening public financial management capacity.
Sharifa Khan, Secretary, Economic Relations Division (ERD) signed the ‘Exchange of Notes’ and the ‘Loan Agreement’ on behalf of Bangladesh. Iwama Kiminori, the Ambassador of Japan, signed the ‘Exchange of Notes’ and Ichiguchi Tomohide, Chief Representative, JICA Bangladesh Office, signed the ‘Loan Agreement’ on behalf of Japan, an ERD press release said.
Under the ‘Development Policy Loan for Strengthening Public Financial Management’, the Government of Japan will provide Bangladesh 30 Billion Japanese Yen (equivalent to USD $225 Million) as budget support for economic recovery and strengthening public financial management capacity.
Also read: Japan provides 500 million yen for 4th Primary Education Development Programme
The interest rate of this loan is 1.6 percent, and Front End Fee (one time) 0.1 percent. Repayment period is 30 years which includes 10 years grace period. Earlier Government of Japan provided two other budget support loans amounting to 685 million Yen in 2020 and 2021.
Also read: Japan provides critical funding to WFP’s lifesaving food assistance for Rohingyas
Japan is the single largest bilateral development partner of Bangladesh. Japanese loans and grants are being utilized in a wide range of areas including power, roads, bridges, telecommunication, agriculture, health, education, water supply and sanitation, rural development, environment, human resource development etc.
Since independence, Japan has provided financial support worth USD $30.12 Billion to Bangladesh.
Also read: Speaker Shirin courts greater Japanese investment in economic zones