IDB to give Bangladesh €94.7 million in loans for low-cost housing

Published : 20 Feb 2018, 13:41

Sahos Desk

The Islamic Development Bank or IDB has approved €94.7 million in loans for housing projects in rural Bangladesh.

IDB approved the loan at its board meeting held recently, an official of the Economic Relations Division said.

“We have sought permission from the prime minister to finalise the deal with IDB. The deal will be signed as soon as she approves it,” ERD Additional Secretary Shamsul Alam said.

The deal may be signed during the annual conference of IDB due on Apr 1-5 in Tunisia, he said.

On Jan 7, IDB issued a letter to Finance Minister AMA Muhith mentioning the withdrawal of $175.5 million loans promised for two projects.

The IDB pulled out $155.5 million from the prepayment metering system project and $20 million from the low-income urban community project.

In its letter to Muhith, IDB said the decision was taken for the sake of upholding AAA credit rating of the bank as the implementation of the projects was taking longer than expected.

The IDB has granted loans for Bangladesh in its first board meeting held after sending the letter citing withdrawal of loans, the ERD officials said. 

The €94.7 million project is meant to build accommodations for low-income people in suburban and rural areas and elevate their living standards.

The government needs to repay €85.1 million within 18 years on a 2 percent interest rate. It has a two-year grace period.

The rest €9.33 million needs to be repaid within 25 years with a 1.35 percent interest rate. It has a seven-year grace period.

Source: bdnews24

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