AIIB to provide $400m to Bangladesh as budget support

Logo of AIIB

The Asian Infrastructure Investment Bank (AIIB) will provide $400 million to Bangladesh as budget support for implementing the ‘Climate Resilient Inclusive Development Program- Subprogram1’.

In this regard, the government of Bangladesh signed a loan agreement of $400 million (JPY 62,773,999,681) as budget support with the AIIB on 27 June to implement the ‘Climate Resilient Inclusive Development Program- Subprogram1’.

Mirana Mahrukh, Additional Secretary, Economic Relations Division (ERD) and Rajat Misra, Acting Vice President, Public Sector Clients Department, Region 1, signed the loan agreement on behalf of Bangladesh and the AIIB respectively, said a press release on Monday.

This Program has been taken by the Finance Division. The scope of the Program includes the following reform areas: (a) creating an enabling environment for implementing climate priorities across ministries; (b) facilitation of climate adaptation priorities; and (c) accelerating climate change mitigation actions.

The loan will be received in standard terms and conditions of AIIB. The maturity period of the loan is 25 years including a grace period of five years. The interest rate of the loan is Reference Rate Variable Spread and Front-End Fee is 0.25 per cent.