The loan will be given as budgetary support under the Strengthening Social Resilience Program. The agreement was signed between the government of Bangladesh and the AIIB in this regard on Wednesday.
Sharifa Khan, secretary of Bangladesh's Economic Relations Division (ERD), and Urjit R Patel, vice-president of Investment Operations (Region 1) at the AIIB, signed the deal in Dhaka on behalf of their respective sides.
According to the ERD, the main objective of the program is to improve the inclusiveness and responsiveness of social development in Bangladesh, including enhancing the coverage and efficiency of social protection, improving financial inclusion of disadvantaged people and strengthening responses to lifecycle social and health needs.
The repayment period of the loan is 26.5 years, including a three-year grace period.
Bangladesh had earlier received 800 million U.S. dollars from the AIIB as budget support in the last three financial years to combat the COVID-19 pandemic, help the government declare stimulus packages and strengthen the post-COVID economy.
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