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Dhaka Saturday,  Jun 15, 2024

ITFC To Provide $2.1 bln In Loan To Bangladesh to Import of Petroleum Fuel & LNG

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

Jeddah-based ITFC and Energy and Mineral Resources Division of Bangladesh signed an agreement in this regard under Annual Financial Plan Negotiation for FY 2024-25 on Wednesday at the ministry.

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

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

Under the credit agreement, the IITFC will finance state-owned Bangladesh Petroleum Corporation (BPC) to import petroleum fuels and state-owned Petrobangla to import liquified natural gas (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 long.

He said this credit support will help the government to smoothly import the 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.

“The overall price of oil and gas has increased in the global context so it is very difficult to maintain energy security. But efforts are underway to ensure energy security,” he said this while witnessing a signing ceremony of a $2.1 billion support agreement of the Energy Division with International Islamic Trade Finance Corporation (ITFC) at his ministry in the capital.

Energy and Mineral Resources division secretary Md Nurul Alam and ITFC, Saudi Arabia chief operation officer Nazeem Noordali signed the agreement on behalf of their respective sides.

The state minister said that efforts are going on to seek cooperation from oil and gas enriched countries along with increasing domestic natural gas and oil exploration and extraction activities.

He said that the ITFC has been cooperating with the government in oil import for a long time, adding, “Now it will cooperate for purchasing of gas as well as oil. Gas can be purchased with about $500 million, which will help a lot in solving the crisis in future.”

The heads of the respective division among others were present at the signing ceremony.

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