DIPLOMATIC CORRESPONDENT

Bangladesh is set to get $3 billion in concessional loans from South Korea over the next five years, becoming the second largest recipient of the East Asian nation’s official development aid.

The loan is being given under the Economic Development Cooperation Fund (EDCF) for 2023-2027. Korea provided $700 million under the EDCF for 2021-2025.

With the substantial increase of the concessional loan to Bangladesh, it is expected that Korea will be able to support mega projects in Bangladesh, thus contributing to the continuous socioeconomic development of Bangladesh, said Lee Jang-keun, the Korean ambassador, in a press release after the framework agreement for EDCF was signed yesterday.

Kisun Bang, the first vice-minister for Economy and Finance of Korea, and Sharifa Khan, secretary of the Economic Relations Division, signed the framework arrangement on the sidelines of the 56th annual meeting of the Asian Development Bank taking place in Incheon, South Korea.

“I hope this $3 billion support serves as a catalyst for improving the daily lives of Bangladesh people, such as in the areas of transportation, health and education, and for enhancing friendship between the people of Bangladesh and Korea,” Jang-keun added.

The repayment period of the EDCF loans will be 40 years, including a 15-year grace period. The interest rate would range from 0.01 percent to 0.05 percent, said the press release from the Korean embassy in Dhaka.