The Financial Express

IDB to lend €94.7m for low-cost housing

| Updated: February 21, 2018 09:27:41

Picture used for representational purpose. Picture used for representational purpose.

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

IDB approved the loan at its board meeting which took place in recent time, an official of the Economic Relations Division told bdnews24.com news agency.

“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 April 1-5 in Tunisia, he said.

On January 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 a letter addressed 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, reports bdnews24.com.

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

Share if you like