Bangladesh Bank (BB) on Sunday signed two separate agreements with International Islamic Trade Finance Corporation (ITFC), members of Islamic Development Bank Group, regarding USD 1.7 billion loans for imports of petroleum products by Bangladesh Petroleum Corporation (BPC).

One agreement styled “Framework Mudaraba Agreement for USD 1 Billion” while, the other titled “Syndicated Mudaraba Agreement”, according to a BB press release.

BB governor Dr Atiur Rahman and ITFC chief executive officer Dr. Waleed Al-Wohaid have inked the agreements on respective their parts at the central bank headquarters in Dhaka.

The BB annually receives US $ 1 billion in loans from ITFC each year for petroleum import by BPC. This year, the ITFC members will provide another US $ 1 billion in loans under syndicated financing by IDB Group members. Of the latter US $ 1 billion, the central bank’s contribution is $ 300 million, according to the press statement.

Twenty-seven foreign financial institutions would take part in the syndication.

The Independent/Bangladesh/ 9th April 2012