Bangladesh signs record $3.2bn loan deal with Japan

Bangladesh has signed an agreement with Japan for a record $3.2 billion loans under a single package.

Bangladesh will have to repay the debt with 0.65 percent interest in 20 years including a 10-year grace period.

The Japanese ambassador in Dhaka Ito Naoki and Bangladesh’s Economic Relations Secretary Fatima Yasmin signed the agreement at the NEC in Dhaka on Wednesday.

Bangladesh will receive the fund through the 41st loan package from Japan.

Under the 40th package, Japan provided Bangladesh with Tk 2.5 billion.

Japan will continue to extend its support for the development of Bangladesh as the country is on its way to achieving the highest growth in Asia in this decade of the century, the Japanese Embassy in Dhaka said in a statement.

Bangladesh will use the fund to implement seven big projects.

The projects include Jamuna Railway Bridge Construction Project (II), Hazrat Shahjalal International Airport Expansion Project (II), Dhaka Mass Rapid Transit Development Project (IV) and Dhaka Mass Rapid Transit Development Project (Line 5 Northern Route) (I).

The others are Chattogram – Cox’s Bazar Highway Improvement Project (E/S), Food Value Chain Improvement Project and Urban Development and City Governance Project.

Japan, the single largest bilateral donor for Bangladesh, has provided the country with $22 billion in loans so far.