April 18, 2024, 1:27 pm

Diplomatic correspondent

2024-02-08 12:23:51 BdST

ITFC to lend Bangladesh $2.1b for smooth petroleum fuel, LNG imports

International Islamic Trade Finance Corporation (ITFC) will provide US$2.1 billion in loans to Bangladesh to facilitate the smooth import of petroleum fuel and liquefied natural gas (LNG).

Jedda-based ITFC and Energy and Mineral Resources Division of Bangladesh signed an agreement in this regard under Annual Financial Plan Negotiation for FY25 on Tuesday at the ministry.

The ITFC is a member of the Islamic Development Bank (IDB) Group.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid was present on the occasion.

Under the credit agreement, the ITFC will finance state-owned Bangladesh Petroleum Corporation (BPC) to import petroleum fuels and state-owned Petrobangla to import LNG.

Energy and Mineral Resources Secretary Md Nurul Alam and chief operating officer and head of the ITFC delegation Nazeem Mooradali signed the agreement on behalf of the respective sides.

Nasrul Hamid told reporters that Bangladesh has been receiving financial support from the ITFC of IDB for a long time.

He said this credit support will help the government to smoothly import petroleum fuel and LNG.

He said that $1.6 billion will be utilised to import the petroleum fuels while remaining $500 million will be used to import LNG.

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