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IDB to provide $ 25m in project aid, $100m for import financing
The Islamic Development Bank (IDB). pledging more assistance to Bangladesh in coming years, will provide a total of 25 million US dollars under three loan agreements signed here yesterday, reports UNB.
IDB President Dr Ahmad Mohamed All, who arrived in the city on an official visit, in-formea Finance Minister Shah AMS Kibria that his agency would lend another 100 million dollars as import trade financing.
In all. the financial institution of the Muslim world is giving Bangladesh a total of 110 million dollars as import balance financing. Of the amount, the accord for the first installment of 10 million dollars was signed yesterday.
The Bank has already sent message to the government to disburse another amount of 27 million dollars in the second phase under the credit line and agreement to this effect is expected shortly. Kibria said.
The first phase amount would be utilised as commodity aid for import of petroleum products by the state-run Bangladesh Petroleum Corporation (BPC).
The other two agreements included 5 million dollars for
the Greater Khulna Poverty Alleviation project and the 10 million dollars for the Rural Electrification project In Gopalganj and Rajbari districts.
Kibria and Dr Ali initialled the accords on behalf of their respective sides. BPC Chairman M Fazlul Hoq and Bangladesh Bank General Manager MAM Kazemi signed the agreements on behalf of their respective organisations.
Bangladesh Bank Governor Lutfar Rahman Sarkar. Additional Secretary at the Economic Relations Division Suhel Ahmed Chowdhury and senior officials were present at the signing ceremony at the NEC Bhaban.
At present, a total of 13 projects in different sectors are being Implemented with IDB assistance. The Bank's lending to these projects amounted to 83.50 million dollars.
The IDB. whose lending to Bangladesh totalled 800 million dollar, equivalent to about Tk 3.600 crore, also indicated its willingness to channel more economic assistance to Bangladesh.
During talks with the finance minister earlier yesterday. the IDB chief praised the government's performance in economic management and said IDB's assistance would mark rise with proper utilisation of the aid.
Dr Ali expressed his keen interest to strengthen bilateral relations between the IDB and the Bangladesh government.
In response. Kibria informed him about the economic situation in the country and said the economy is performing well with foreign exchange reserve level remained stable.
The IDB president, who came to Bangladesh in connection with the Convocation of Islamic Institute of Technology (im. is due to leave the city tonight (Wednesday night).