Jica offers Tk 2,273cr budgetary support loan

Japan International Cooperation Agency (Jica) will provide an Official Development Assistance loan of Tk 2,273 crore (equivalent to JPY 3,000 crore) as budgetary support for strengthening public financial management. 

Ichiguchi Tomohide, chief representative of JICA Bangladesh, and Sharifa Khan, secretary to Economic Relations Division, signed an agreement in this regard at National Economic Council in Dhaka yesterday, according to a press release.

The loan comes with an annual interest rate of 1.6 per cent along a 30-year repayment period, including a 10-year grace period. Aimed toward the economic recovery of Bangladesh, it is to be disbursed quickly, it said.

It said the development policy program for this loan would support strengthening public financial management capacity through increasing revenue and improving expenditure management of the Bangladesh government.

"The signing of this loan agreement is crucial to support economic recovery and sustainable and inclusive growth for the people of Bangladesh," said Tomohide.

"The fund will help in meeting the government's budgetary needs, prop up foreign exchange reserves and give impetus to the reform plans," he said.

Iwama Kiminori, Japanese ambassador to Bangladesh, was present at the event.