OPEC provides $75 million to Bangladesh for Covid recovery

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Dhaka, Feb 14 -OPEC Fund international development provides Bangladesh USD $ 75 million as budgetary support loan which will be used to implement urgent reforms to facilitate rapid recovery from the adverse impact of the COVID-19 pandemic. 

A loan agreement for financing sustainable economic recovery program (SERP) was signed between Bangladesh and the OPEC Fund for International Development (OFID) on Monday. 

Fatima Yasmin, Secretary, Economic Relations Division (ERD), and Abdulhamid Alkhalifa, Director General, OFID  signed the agreement on behalf of their respective sides. 

The purpose of loan is to provide budgetary support which will be used to implement urgent reforms to facilitate rapid recovery from the COVID-19 pandemic, specifically by creating - fiscal space to support critical public expenditure, and a favorable environment to foster the growth of Cottage, Micro, Small and Medium-sized Enterprises, to create generating employment and income opportunities. 

The loan’s interest rate is fixed at 1.35 percent and would carry a commitment fee charge of 0.25 percent annually. Front-end fee 0.25 percent and would have a maturity of 20 years including a grace period of 5 years. 

OFID is one of the largest Development Partners of Bangladesh. It has been providing economic assistance to Bangladesh for the development program/project, particularly in the area of road transport and power sector since the fiscal year of 1974/75. 

So far, OFID has provided development assistance of $ 552.61 million to Bangladesh in 30 development projects. - UNB