South Korea to supply $50m in budget support
South Korea has decided to provide $50 million in funds support to Bangladesh to greatly help the country continue its fight the coronavirus pandemic.
In June, Bangladesh had urged the Southern Korean government for financial aid amid the crisis.
And recently, the South Korean embassy found in Dhaka informed both the financing and the foreign affairs ministries that Seoul has accepted Bangladesh's request.
As such, the federal government of South Korea provides $50 million loan beneath the Economic Expansion Cooperation Fund to greatly help Bangladesh address the Covid-19 fallout.
The embassy has requested the government to complete the state procedures needed to finalise the bank loan agreement, which is disbursed through Korea Eximbank.
"I am confident that this provision will lend satisfactory support for Bangladesh's fight against the Covid-19," said Lee Jang-keun, South Korean ambassador to Bangladesh, in the letter.
"I would like to make sure you of Korea's company solidarity with the persons of Bangladesh in this joint fight the pandemic."
Bangladesh has up to now received more than $2 billion due to financial support from its various multilateral and bilateral companions to recuperate from the monetary downturn.
This includes the help of the World Lender, the International Monetary Fund, and the Asian Development Bank.
The IMF is providing $732 million as emergency assistance, the greatest financial support provided by any entity to Bangladesh to handle the Covid-19 fallout.
The ADB provided $608 million as spending plan support and technical assistance, and the fund was already deposited to the federal government treasury.
The ADB extended the support to Bangladesh to greatly help the country address its immediate public health and wellbeing requirements.
The Manila-based loan provider funded the immediate procurement of equipment and supplies needed for testing and upgrading the country's medical infrastructure.
It also helped create a system and network capacities for surveillance, prevention and response to the pandemic.
The WB is providing a lot more than $600 million to greatly help the united states take preventive measures amid the global pandemic.
Of the assistance, $100 million was used to help Bangladesh prevent, detect, and react to the Covid-19 pandemic and strengthen its national program for public health emergencies.
The rest of the $500 million is for providing spending budget support for different projects.
The federal government has sought $1 billion from the Japan International Cooperation Agency (Jica). Officials of the Economical Relations Division said these were hopeful about obtaining support from the Jica.
Besides, the federal government is in search of financial assistance from its development companions to procure Covid-19 vaccines the moment it hits the international marketplace.
The ministry estimates that Bangladesh might need between $1.65 billion and $2 billion to vaccinate the 165 million persons in the country.
The ERD sought $500 million from the WB, $500 million from the ADB, $500 million from Japan and $200 million from the Asian Infrastructure Investment Bank to purchase, store, transport and distribute the vaccines.
Bangladesh needs exterior financing to implement it has the $14 billion stimulus deals introduced to greatly help its persons cope with the losses caused by the pandemic. The plans are equal to 4.03 % of the GDP.
