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South Korea to provide $700 million loan to Bangladesh


Published : 15 Jun 2021 09:23 PM | Updated : 16 Jun 2021 12:54 AM

South Korea has decided to provide $700 million EDCF loan to Bangladesh between 2021 and 2025, the embassy in Dhaka said. 

Korea established the Economic Development Cooperation Fund (EDCF) on June 1, 1987 with the purpose of promoting economic cooperation between Korea and developing countries.

Bangladesh is a priority development partner of South Korea and the second-largest recipient of Korea’s EDCF loan, the embassy said. 

The two governments have been discussing this latest plan since last year and, upon the completion of necessary domestic procedures, will sign a Framework Agreement which contains detailed conditions and the list of potential projects to be considered.

This decision was shared by Ambassador Lee Jang-keun with Fatima Yasmin, Secretary of Economic Relations Division of the Ministry of Finance, at the ODA Projects Review Meeting between the Embassy and ERD held virtually on Tuesday.

At the meeting, the Korean Embassy and Bangladesh ERD reviewed a number of other ongoing and new development assistance projects between the two governments, including those under implementation through KOICA.

Korea has provided $1.24 billion EDCF loan and $172 million in grants through KOICA since 1991 in various sectors, including public administration, vocational training and education, transport, ICT- based communication, public administration, water management, and public health.

At the meeting, the Embassy also introduced Knowledge Sharing Program(KSP), a platform for development cooperation aiming to share knowledge with development partner countries and develop a solid foundation for the expansion of economic and political cooperation.

Meanwhile, the Embassy recommended the ERD to consider ways to improve the efficiency of development cooperation, including the facilitation of customs

clearance and tax exemption on grant equipment and items in accordance with the Framework Agreement for grant aid between the two governments.