Bangladesh signs $335 million loan agreement with China
Bangladesh has signed a $335.78 million concessional loan agreement with China to expand and modernise its southwestern Mongla Port, located about 80 km west of the Indian border, according to a media report on Monday.
The agreement will finance the construction of two container terminals and dedicated cargo-handling yards at Mongla, Bangladesh’s second-largest seaport after Chattogram, as Dhaka seeks to expand the port's capacity and infrastructure.
The loan agreement for Renminbi Yuan 2.404 billion or Bangladeshi taka 3,592.8975 crores was signed between the Bangladesh Government and the Export-Import Bank of China on Saturday, the State-run BSS news agency reported.
China will provide the loan at a concessional interest rate of 2 per cent, with a 20-year repayment period, including a five-year grace period, according to a statement by the Finance Ministry's Economic Relations Division (ERD).
