Thursday | 16 January 2025 | Reg No- 06
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Thursday | 16 January 2025 | Epaper

Bangladesh, WB ink deal worth $500m loan to boost climate-resilient funding

Published : Sunday, 22 December, 2024 at 6:06 PM  Count : 337

The Bangladesh government and the International Development Association (IDA) of the World Bank Group signed a US$ 500 million worth loan agreement on Sunday to implement the ‘Second Bangladesh Green and Climate Resilient DPC Programme’.

The main objective of the stated programme is to strengthen fiscal and financial sector policies to sustain growth and to enhance resilience to future shocks, including climate change, said a press release.

Md Shahriar Kader Siddiky, Secretary, Economic Relations Division and Abdoulaye Seck, Country Director, the World Bank signed the financing agreement on behalf of their respective sides.

Out of 500 million, $250 million loan is being taken from the World Bank’s IDA-Regular loan. This loan is repayable in 30 years with 5 years grace period. Interest rate is 1.25 per cent, commitment fee is 0.50 percent and service charge is 0.25 percent.

But World Bank waives the commitment fee every year.

Remaining $250 million is being taken from IDA-Shorter Maturity Loan (SUW-SML). This loan is repayable in 12 years with 6 years grace period.

Out of 500 million, $250 million loan is being taken from the World Bank’s IDA-Regular loan. This loan is repayable in 30 years with 5 years grace period. Interest rate is 1.25 per cent, commitment fee is 0.50 percent and service charge is 0.25 percent.

But World Bank waives the commitment fee every year.

Remaining $250 million is being taken from IDA-Shorter Maturity Loan (SUW-SML). This loan is repayable in 12 years with 6 years grace period.

This loan has no interest, service or other charge. There is only 0.50 percent commitment fee, which is normally waived by the World Ban, the release added.

This loan has no interest, service or other charge. There is only 0.50 percent commitment fee, which is normally waived by the World Bank.

Meanwhile, Finance Division is the main implementing agency of this programme. Other implementing ministries or divisions are Local Government Division, Bangladesh Bank, Ministry of Planning, Ministry of Environment, Forest and Climate Change, Ministry of Power, Energy and Mineral Resources, Ministry of Science and Technology, Health Services Division and National Board of Revenue.


NY


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