Bangladesh to get $250 million from AIIB as budget support

The Asian Infrastructure Investment Bank (AIIB) has agreed to give $250 million in loan as budget support to implement the Strengthening Social Resilience Programme (sub-programme 2).

Sharifa Khan, secretary of the Economic Relations Division, and Urjit R Patel, vice-president of Investment Operations Region-1 at the AIIB, inked a deal in this regard at the ERD in Dhaka today.

The main objective of the programme is to improve the inclusiveness and responsiveness of social development in Bangladesh, the ERD said in a statement.

If the programme is implemented, it will improve the coverage and efficiency of social protection.

It will also improve financial inclusion of disadvantaged people and strengthen the responses to lifecycle social and health needs.

The loan will be received in standard terms and conditions of the AIIB.

The repayment period of the loan is 26.5 years, including a three-year grace period.

The AIIB invested $2.79 billion in Bangladesh in the last five years.

Bangladesh received $800 million from AIIB as budget support in the last three financial years to combat the Covid-19 pandemic, help the government declare stimulus packages and strengthen the post-Covid economy.