Dhaka Bureau: South Korea will give a flexible loan of 3 billion dollars to Bangladesh in the next four years. According to the current exchange rate, the amount is more than 32 thousand crore rupees. Yesterday Thursday (04 May) in Inchon, Korea, a ‘framework arrangement’ was signed between the governments of the two countries.
Besides, a memorandum of understanding for the construction of Metro Rail Line-4 under the Dhaka Mass Rapid Transit Development Project and a loan agreement for the implementation of two projects of Bangladesh Railway and Road Department have been signed.
This information was informed in a press release of Economic Relations Department (ERD).
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It is said that Sharifa Khan, Secretary of the Department of Economic Relations on behalf of the Government of Bangladesh, and Kisoon Bang, Vice Minister of the Ministry of Finance of that country, signed it on behalf of the Government of Korea.
According to ERD, several important large projects in Bangladesh will be implemented under flexible loan assistance of 3 billion dollars for the period 2023-2027, financed by the Economic Development Cooperation Fund (EDCF) of Korea. The annual interest rate of each of the loan agreements that will be signed under this will be only 0.01% to 0.05%. The repayment period is 40 years and the grace period is 15 years.
The Korean government through Korea Exim Bank has been providing flexible loan support to Bangladesh for socio-economic and infrastructural development and expansion of information technology since 1993. Already, 17 projects have been completed with a loan of 6647 million 70 thousand dollars from the Korean government. In addition, 7 projects worth 61 crore 62 lakh 80 thousand dollars are currently underway. The Korean government has so far granted about $1.449 billion in flexible loans to Bangladesh, the second highest among its development partner countries.
The press release also informed that on Thursday, the MoU of Dhaka Mass Rapid Transit Development Project (Line-4) was signed between the Department of Economic Relations of the Government of Bangladesh and the Ministry of Finance of Korea. This project will be implemented under the Road Transport and Highways Department.
Besides, 6 million 10 million dollars for the implementation of the “Replacement and Modernization of Signaling and Interlocking System of Stations of Ishwardi-Parvatipur Section of West Zone” project of Bangladesh Railway under the Ministry of Railways and a purchase of CNG single decker buses for BRTC under the Road Transport and Highways Department. A loan agreement of 7 crore 74 lakh 40 thousand dollars was signed in the project.
Additional Secretary of Economic Relations Department on behalf of the Government of Bangladesh. Shahriar Quader Siddiqui and Hee-Sung Yoon, Chairman of Korea Exim Bank, signed the loan agreement on behalf of the Korean government.
