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The government has signed a significant loan agreement with the OPEC Fund for International Development (OFID) to support the country’s ongoing economic reform initiatives. The agreement, signed on April 22, 2025, secures a loan of $100 million (equivalent to €96.10 million) in budgetary support under the “Strengthening Economic Management and Governance Program.”
Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, signed the agreement on behalf of the Government of Bangladesh. Representing the OPEC Fund was its President, Dr Abdulhamid Alkhalifa. The signing ceremony took place in Washington DC, USA.
The loan aims to bolster macroeconomic management and drive forward key financial reforms in Bangladesh. According to the terms of the agreement, the loan will bear an interest rate of 6-month EURIBOR plus 1.20% per annum on amounts withdrawn and outstanding. The loan has a total maturity period of 18 years, which includes a 3-year grace period.
OFID has been a long-standing development partner of Bangladesh, extending vital support in sectors such as road transport and power since the 1977-78 financial year. To date, OFID has contributed a total of $793.61 million across 33 public sector development projects and an additional $310.21 million to initiatives in the private sector.
This new financial agreement is expected to significantly contribute to Bangladesh’s efforts to strengthen its economic governance and sustain inclusive development.
