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The Japanese government will provide 30 billion Japanese Yen, equivalent to approximately US$ 209 million or Tk 22.73 billion, as budgetary support to Bangladesh - as part of its development-policy loan for strengthening the country's public financial management.
An official development assistance (ODA) loan agreement in this connection was signed between the Japan International Cooperation Agency (JICA) and the Economic Relations Division (ERD) in Dhaka on Tuesday.
ERD Secretary Sharifa Khan and JICA Chief Representative to Bangladesh Ichiguchi Tomohide signed the 44th ODA package on behalf of the respective governments. Japanese Ambassador to Bangladesh Iwama Kiminori witnessed the signing ceremony.?
The ambassador and the ERD secretary also signed the exchange of notes of the 44th ODA Yen Loan of Japan, approximately $209 million.
According to the JICA and Japanese Embassy press releases, the loan is a budget support loan, aimed towards economic recovery of Bangladesh, and it would be disbursed quickly.
The development policy programme for this loan would support strengthening public financial management capacity through increasing revenues and improving expenditure management of the government.
The loan comes with an annual interest rate of 1.6 per cent with a 30-year repayment period, which includes a 10-year grace period.
According to UNB, the Japanese ambassador on this occasion said the Japanese government quickly approved the loan in a cabinet meeting following the Japanese prime minister's assurance to Bangladeshi Prime Minister Sheikh Hasina during her recent visit to Japan.
He hoped that the loan would help the government overcome the current economic challenges and contribute to further strengthening the relations between the two countries.
The JICA chief representative said the loan agreement is crucial to support economic recovery as well as ensure sustainable and inclusive growth for the people of Bangladesh.
The fund would help the government meet its budgetary needs, prop up foreign exchange reserve, and give impetus to the reform plans.
The Japanese government earlier provided two other budget support loans, amounting to 685 million Yen, in 2020 and 2021.
Throughout the years, Japan has been Bangladesh's largest bilateral development partner, with this financial assistance being yet another support towards the developmental efforts for the country's people and government.