The government of Bangladesh has approved five loan proposals totaling $1.9 billion from development partners, of which around $1.6 billion are classified as non-concessional loans with strict repayment terms. The approval came from the Standing Committee on Non-Concessional Loans at the Planning Ministry, chaired by Finance and Planning Minister Amir Khasru Mahmud Chowdhury. About $1.3 billion of the total will be used as budget support to address immediate fiscal pressures.
Under the approved package, Bangladesh will receive $450 million from the Asian Development Bank (ADB), $500 million from the Japan International Cooperation Agency (JICA), $250 million from the Asian Infrastructure Investment Bank (AIIB), and $100 million from the OPEC Fund for International Development. Officials said these loans carry higher interest rates, shorter grace periods, and tighter repayment schedules. In addition, ADB will provide another $300 million for the SASEC Dhaka–Sylhet Corridor Road Investment Project.
The committee also decided that non-concessional loans will be taken only when concessional financing is unavailable, and repayment capacity must be ensured. It set limits to keep annual repayment costs below 10% of export earnings or 15% of government revenue, and total non-concessional debt under 10% of GDP.