BD signs $289.5m loan deal with IsDB for housing finance project

Bangladesh and the Islamic Development Bank (IsDB) signed a significant loan agreement for the second phase of the 'Rural and Peri-Urban Housing Finance Project,' valued at approximately $289.52 million, reports UNB.

The agreement was signed at the annual meeting of the IsDB held in Riyadh on Monday.

The five-year project agreement was inked by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, and Dr. Mansur Muhtar, Vice President of IsDB.

The signing ceremony was attended by notable figures including Finance Minister Abul Hassan Mahmood Ali and Muhammad Al Jasser, Chairman of the IsDB.

This initiative, set to be implemented by the Bangladesh House Building Finance Corporation under the Financial Institutions Division, aims to provide affordable housing loans. The project will focus on constructing well-planned, sustainable, and eco-friendly multi-storied residential buildings with essential amenities for the low and lower-middle-income groups in rural and peri-urban areas of Bangladesh.

The project not only aims to provide affordable housing but also ensures the conservation of cultivable land by promoting the optimum use of available land.

Additionally, it will enhance the capacity of the House Building Finance Corporation in its financing activities related to house building loans.