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Korea to give United States $700 million for socio-economic development in Bangladesh

  • Diplomatic News
  • Lead News
  • 24 October, 2021 23:50:13

Photo: Collected

News Desk: Bangladesh and South Korea on Sunday (October 24) signed a new Framework Arrangement concerning loans from the Economic Development Cooperation Fund (EDCF) for the years 2021 through 2025.

 

Korean Ambassador to Bangladesh Lee Jang-keun and Secretary of the Economic Relations Division (ERD) Fatima Yasmin inked the deal in Dhaka.The signed EDCF Framework Arrangement will serve as a legal foundation for Korean government’s provision of up to 700 million USD in concessional loans to the government of Bangladesh for the next five years.

 

According to the Arrangement, candidate projects will be identified to be financed in close consultation between the two governments. The repayment period of the EDCF loans will be 40 years, including 15 year grace period, with the annual interest rate between 0.01 percent to 0.05 percent.

 

The Arrangement also stipulates that the article that all taxes, customs duties and other fiscal charges imposed in Bangladesh on goods and services related to the EDCF projects shall either be exempted or borne by the Bangladesh government

 

Bangladesh is the second largest recipient of the EDCF loans worldwide in aggregate amount. So far, the Republic of Korea has funded 24 development projects of Bangladesh with total amount of 1.2 billion US dollars through the EDCF.

 

The amount of concessional loans to Bangladesh from Korea has been steadily increasing in recent years.

 

The amount authorized in a renewed Framework Arrangement is up from the amount authorized in previous EDCF Framework Arrangement 2017-2020 which stipulated provision of 500 million USD in four years.

 

“As a trusted development partner of Bangladesh, Korea will continue to support Bangladesh in its journey toward the socio-economic development of Bangladesh. The new EDCF Framework Arrangement signed today will provide additional momentum to further boost our economic and development cooperation,” said Ambassador Lee.

 

“I hope this new Framework Arrangement provides meaningful resources in achieving SDGs of Bangladesh government and for smooth graduation from the LDCs by 2026,” he said.

 

A renewed Framework Arrangement will primarily concentrate on supporting several sectors such as enhancing health services and improving transportation in Bangladesh, reads a press statement of the Korean Embassy.

 

 

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