Bangladesh, IsDB sign $289.52mn loan deal for rural housing project

A loan agreement titled 'Rural and Peri-Urban Housing Finance Project-Second Phase' amounting EURO 270.57 million (Approximately US$289.52 million) was signed at the Islamic Development Bank (IsDB) annual meeting program held in Riyadh.

The duration of this project is five years from the date of effectiveness, reports BSS.

The agreement has been signed yesterday between the Government of Bangladesh (GoB) and the Islamic Development Bank (IsDB).

Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division, Ministry of Finance and Dr. Mansur Muhtar, Vice President of IsDB signed the loan agreement on behalf of their respective sides, said a press release on Tuesday.

During the signing, Finance Minister Abul Hassan Mahmood Ali and IsDB Chairman Dr. Muhammad Al Jasser were present there.

The project will be implemented by the Bangladesh House Building Finance Corporation under the Financial Institutions Division.

The objectives of the project are to provide affordable housing loans for the construction of well-planned, sustainable and eco-friendly multi-storied residential buildings with essential amenities for the low and lower-middle-income population living in rural and peri-urban areas of the country.

As a result, the conservation of cultivable land will be possible by ensuring the optimum and best use of land through implementing this project.

Besides, it will strengthen the capacity of the House Building Finance Corporation in its house building loan financing activities.

IsDB is one of the trusted multilateral development partners of Bangladesh and has been providing continuous support for the socio-economic development of Bangladesh since its inception in the form of grants, project loans, trade financing, private sector financing, export credit guarantees etc.