Bangladesh signs $100-mn loan agreement with S Korea

27 Dec '21

1 min read

Pic: Bacho12345 | Dreamstime.com

South Korea will offer $100 million in concessional loan to Bangladesh from the Economic Development Cooperation Fund (EDCF) to help the latter recover from the pandemic. EDCF is a Korean development financing programme to assist the socio-economic development of developing countries. The amount will be disbursed this month by the Korea Exim Bank.

Mohammad Shahriar Kader Siddiky, additional secretary of Bangladesh’s economic relations division, and Kim Tae Soo, executive director of the South Korean bank, signed a deal in this regard recently.

The loan’s maturity period is 40 years, including a grace period of 15 years, according to bangla media reports.

South Korea has already provided $50 million of EDCF loan as budgetary support in December 2020 to help Bangladesh's efforts for fighting against the COVID-19 pandemic. It is the second provision of this type of concessional loan.

Bangladesh is the second largest recipient of the EDCF loans worldwide in aggregate amount.

So far, the Republic of Korea has funded 24 development projects of Bangladesh with total amount of $1.2 billion through the EDCF.

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