The World Bank (WB) is to give Bangladesh a loan of US$ 50 million, equivalent to Tk 3.50 billion (350 crore), to finance an investment promotion project, Economic Relations Division (ERD) sources said, reports BDNEWS
Small and medium scale infrastructure projects will be implemented under the Investment Promotion and Financing Facility (IPFF) Project, officials of the WB and the ERD said during an agreement signing ceremony held at the ERD.
ERD Secretary Ismail Zabihullah and WB Country Director Christine I Wallich signed the accord on behalf of their respective sides.
The loan is being offered at a rate of three-fourths of one per cent service charge per annum repayable in 40 years, including 10-year grace period.
Main objectives of the project are to supplement the resources of the Bangladesh's financial market to provide terms of finance for investment projects and to promote the role of private sector entrepreneurs in the development of infrastructure.
The facility loan will be utilised by the Participating Financial Institution (PFIs) to provide investment loan for the purpose of financing investment programmes. For each investment programme entrepreneurs, PFIs, WB and government will finance 30 per cent, 17.5 per cent, 42.5 per cent and 10 per cent respectively, the agreement said.
The WB country director said Bangladesh has made good progresses in last few years in implementing the broad range of policies to improve growth and reduce poverty despite recurrent disasters and rise of commodity prices, especially oil.