Korea and Bangladesh signed a new Framework Arrangement for $3 billion of concessional loans.
This arrangement was signed for the Economic Development Cooperation Fund (EDCF) for the year 2023 through 2027 in Korea.
The signing ceremony was held on the occasion of 56th Annual General Meeting of the Board of Governors of Asian Development Bank (ADB) held in Korea.
Kisun Bang, first vice minister for Economy and Finance, and Sharifa Khan, secretary of Economic Relations Division (ERD), signed the arrangement on behalf of respective sides on Thursday (May 4).
On this occasion, Memorandum of Understanding (MoU) on the cooperation for Dhaka MRT Line 4 and EDCF Loan Agreement (L/A) for two projects, procurement of CNG buses and modernization of railway signalling system, were also signed by concerned representatives from both sides.
The signed arrangement will serve as a legal foundation for Korean government's provision of up to $3 billion in concessional loans to the Government of Bangladesh for the next five years.
According to the Arrangement, the repayment period of the EDCF loans will be 40 years, including 15 year grace period, with the annual interest rate between 0.01%~0.05%. According to the arrangement, candidate projects will be identified in the future in close consultation between the two governments.
BDST: 1931 HRS, MAY 04, 2023