S Korea to lend Bangladesh $100m for social resiliency

South Korea is going to provide a $100 million loan to Bangladesh to support the country’s social resiliency programme.

To this end, the finance ministry’s Economic Relations Division (ERD) and South Korea's state-backed Korea Eximbank have signed an agreement for the “Second Strengthening Social Resilience Program, Subprogram-1”.

The ERD Wing Chief and Additional Secretary Mirana Mahrukh, and Korea Eximbank Executive Director Hwang Kiyeon signed the agreement on Monday, as stated in a press release.

The finance division, along with other ministries, has created a policy reform programme to make social protection in Bangladesh stronger, more inclusive, and more responsive.

Since 1993, Korea Eximbank has been providing soft loans for important development projects in Bangladesh on behalf of the Korean government.

This loan will have a simple interest rate of 1% per year. It will be paid back over 25 years, with the first seven years being a grace period.