BSS, Dhaka :
A loan agreement for financing the ‘Sustainable Economic Recovery Programme (SERP)’ was signed on Monday between the Government of Bangladesh and the OPEC Fund for International Development (OFID) under which the OPEC Fund will provide $ 75.00 million as budgetary support. Fatima Yasmin, Secretary, Economic Relations Division and Abdulhamid Alkhalifa, Director-General, OFID signed the agreement on behalf of their respective sides.
The purpose of the loan is to provide budgetary support which will be used to implement urgent reforms to facilitate rapid recovery from the COVID-19 pandemic, specifically by creating (a) fiscal space to support critical public expenditure; and (b) a favorable environment to foster the growth of Cottage, Micro, Small and Medium-sized Enterprises, thereby generating employment and income opportunities, said an ERD press release.
The loan shall bear interest at the rate of 1.35 per cent per annum and shall carry a commitment fee charge of 0.25 per cent per annum, Front-end fee 0.25 per cent and shall have a maturity of 20 years including a grace period of 5 years. OFID is one of the largest Development Partners of Bangladesh. It has been providing economic assistance to Bangladesh for the development program/project, particularly in the area of road transport and power sector since the Financial Year of 1974/75. So far, OFID has provided development assistance of $552.61 million to Bangladesh in 30 development projects.
