South Korea to provide $700m soft loan to Bangladesh

South Korea will provide Bangladesh with $700 million soft loan support to help the latter's economy recover from Covid-19 shocks.

Two countries signed a framework arrangement on the loan assistance at the Economic Relations Division (ERD) conference room at Sher-e-Bangla Nagar in the capital on Sunday.

South Korean Ambassador to Bangladesh Lee Jang-keun and ERD Secretary Fatima Yasmin signed the framework arrangement on behalf of their respective sides.

This loan amount will be disbursed by the Korean Exim Bank by 2025.   

The rate of interest under the soft loan programme is .01% to .05% and the maturity period is 40 years, including a grace period of 15 years.

SZA