The OPEC Fund for International Development (OFID) yesterday signed a loan agreement to provide 96.10 million euro (equivalent to $100 million) in budgetary support to Bangladesh.

The loan will be provided under the Strengthening Economic Management and Governance Program, according to a press release.

Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD) under the finance ministry, and Abdulhamid Alkhalifa, president of OFID, signed the agreement on behalf of their respective sides in Washington DC, USA.

The loan aims to support macroeconomic and financial sector reforms in Bangladesh, the ERD said in the statement.

It carries an interest rate of six-month EURIBOR plus 1.20 percent annually on withdrawn and outstanding amounts, along with a commitment fee of 0.25 percent per annum on the unwithdrawn portion. The loan has an 18-year maturity period, including a three-year grace period.

OFID, an intergovernmental development finance institution, has been a key development partner for Bangladesh since fiscal year 1977-78, primarily supporting the road transport and power sectors.

To date, OFID has provided $693.61 million for 32 public sector development projects and $310.21 million for the private sector in Bangladesh, according to the ERD.