The government on Monday approved Islamic development Bank’s (IDB’s) US$1.2 billion loan proposal to Bangladesh.

Hard term loan committee approved the proposal of the Energy and Mineral Resources Division placed on January 9 last with Finance Minister AMA Muhith is the chair.

Finance Division Secretary Dr Mohammed Tareq, Energy and Mineral Resources Division Additional Secretary Md Abu Taher, BPC Chairman Anwarul Karim and other senior officials were present at the meeting.

Last December, Islamic Development Bank (IDB) assured Bangladesh of providing US$ 1.2 billion for procurement of 5.5 million tonnes of petroleum fuels during this calendar year.

The IDB assurance came in response to Bangladesh’s proposal at a meeting in Jeddah late last year with Islamic Trade and Finance Cooperation (ITFC), a sister concern of IDB.

The IDB assured to provide the loan as the Bangladesh Petroleum Corporation was suffering fund shortage for import of petroleum oil. The BPC has sought Tk 25 billion as a subsidy from the Ministry of Finance to ease its financial crisis.

The government sought nearly USD $2 billion loan support from the IDB for this calendar year, a senior official of the Energy and Mineral Resources Division (EMRD) told daily sun.

“IDB assured us of providing US$ 1.2 billion in response to an appeal for nearly US$ 2 billion,” he said, adding.

News:Daily Sun/Bangladesh/08 Feb 2011