Japan to provide USD 1.24 billion line of credit to Bangladesh for road, railway and port projects

Tags: Economy/Finance International News

Japan will provide an Official Development Assistance (ODA) loan of USD 1.24 billion to Bangladesh for infrastructure and connectivity projects and the second tranche of the 43rd Japanese Yen loan package was signed at the exchange of notes between the two countries.

An Overview of the News

• The loan package includes three projects: Chattogram-Cox's Bazar Highway Improvement Project, construction of a dual gauge rail line between Joydebpur-Eshwardi section, and Matarbari Port Development Project, Phase 2.

• The first tranche of loan was almost the same amount, making the total package around US$ 2.48 billion.

• Japan has been the largest bilateral donor to Bangladesh since 2012, assisting various mega-infrastructure projects.

About Official Development Assistance (ODA)

• It is financial aid provided by developed countries to developing countries to support economic growth and reduce poverty.

• It can be given in the form of grants or loans, and is provided by governments, international organisations and non-governmental organisations.

• It can be used for a variety of purposes, including building infrastructure, promoting economic development, and providing emergency relief.

• The Organization for Economic Co-operation and Development (OECD) monitors and reports on ODA flows between its member countries.

• ODA is important for supporting economic growth and reducing poverty in developing countries.

About Japan

Prime Minister- Fumio Kishida

Capital- Tokyo

Currency - Yen

Ambassador- Iwama Kiminori

About Bangladesh

Prime Minister- Sheikh Hasina

Bangladesh currency - Bangladeshi taka

Capital- Dhaka.