The Asian Development Bank (ADB) is set to provide budgetary support worth $500 million to Bangladesh for its economic recovery.
The budget support will also support the government agendas to accelerate implementations of policies on climate change, said the bank's country director Edimon Ginting.
He made the statement following a meeting with Planning Minister MA Mannan on Thursday.
Ginting also said: "Challenges coming from global uncertainty have affected the economy slightly but I think the country is managing it well."
After the meeting, Planning Minister MA Manna said he was very pleased with the decision and this loan will be helpful in rehabilitation of the flood-affected population.
About the interest rate of the loan, the ADB country director said for now it was fixed at 0.5%.
Bangladesh will have a grace period of three years and the country will get 15 years to repay the loan.
However, both the ADB country director as well as the planning minister said that the terms of the loan were not yet concrete. There might be some alterations following discussions regarding the matter.