Korea confirms $100m budget support for BD

Korea has confirmed $100 million worth of budgetary support for Bangladesh as it signed a loan agreement with the government on Monday.
The loan will be used for reform in the social resilience programme in Bangladesh, said a press release from the Economic Relations Division (ERD).
ERD Additional Secretary Mirana Mahrukh and Korea EXIM Bank Executive Director Hwang Kiyeon signed the loan deal.
With the budgetary support, the Finance Division and the relevant ministries in Bangladesh have formulated a policy reform programme for the social protection and resilience.
The government supports the poor and lower middle-class people with some social safety-net programmes which will be the key area of reforms through the Korean budget support, said a senior ERD official.
Korean EXIM Bank will charge 1.0 per cent interest rate for the $100 million loan.
The maturity of the budget support will be 25 years with a 7-year grace period.
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