Bangladesh to get $1.5b IDB loan a year to finance fuel oil imports

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Bangladesh will have an additional access to IDB's fund for financing fuel oil imports up to US$ 1.5 billion annually, while the multilateral development bank will examine loans at a lower rate only for the portion to be provided from its own resources, reports UNB.

Islamic Development Bank (IDB) gave the broad hint during a bilateral discussion between Finance Adviser Dr Mirza Azizul Islam and high officials of the bank on the sidelines of the IDB's annual conference of the Board of Governors on June 3-4 in Jeddah.

The Bangladesh delegation to the conference, led by the Finance Adviser, requested IDB to double its financing for fuel oil imports to US$ 2 billion from existing US$ 1.0 billion annually as the country is struggling to meet the increased requirement from domestic sources.

"They (IDB) feel it difficult to formally raise the ceiling. But if we need to an extent of US$ 1.5 billion, they feel that should not be a problem," Dr Aziz told reporters at Zia International Airport Thursday, on return from the conference.

He said Bangladesh also requested the finance at a lower rate only for the portion from IDB's own resources. IDB also mobilise resources from the market to finance its member countries.

"They (IDB) will examine the concessional element of the financing