Bangladesh will repay the loans at the six-month average Euro Interbank Offered Rate, plus 0.81 percent, over 20 years with a five-year grace period. The combined interest rate will amount to about 2 percent.
The health ministry will implement the Bangladesh COVID-19 Public Health Programme, the Economic Relations Division said.
Fatima Yasmin, the economic relations secretary, Edvardas Bumsteinas, head of EIB’s Asia and Pacific Division, and Imanol Lecue Gurtubay, EIB’s legal counsel, signed the deal on Wednesday.
Officials said the funds will be used to buy and supply vaccines, strengthen the healthcare system and expand social safety network.
