Kabir Humayun of DOT
The government has approved US$800 million hard-loan from Islamic Development Bank (IDB) for importing oil, officials said. It also endorsed $1.3 billion worth of hard loans from four foreign banks and institutions to set up a urea fertiliser factory at Palash in Narshingdi, reports The Financial Express.
The Standing Committee of the Non-Concessional Loan of the Government, headed by Finance Minister AMA Muhith, endorsed the high-interest loan on Wednesday.
The loans will come from the IDB’s commercial wing – Islamic Trade Financing Cooperation (ITFC) — and from four foreign lenders.
The Economic Relations Division (ERD) placed the IDB’s $1.0 billion loan proposal before the standing committee, meeting sources told the FE.
Of the amount, $800 million was approved for immediate purchase of oil while the remaining $200 million would be endorsed later if required, a senior official said.