The government and the International Islamic Trade Finance Corporation, a member of the Islamic Development Bank Group, on Wednesday signed two significant financing agreements in Jeddah to strengthen food security.
These agreements will support the import of fertilisers in Bangladesh, which is expected to play a crucial role in ensuring the country鈥檚 food security, according to press release by Economic Relations Division on the day.聽
The agreements include a Master Murabaha Financing Agreement and a Syndicated Murabaha Financing Facility, under which ITFC will initially provide $100 million in financing.
For the first time, this initiative has been extended to fertiliser imports after Bangladesh Petroleum Corporation has been importing oil every year through ITFC financing.
The loan singing agreement is part of the commitment of $500 million in short-term loans by ITFC to import fertiliser.聽
On behalf of Bangladesh, Shahriar Kader Siddiky, secretary of the ERD signed the Master Murabaha Financing Agreement, while Emdad Ullah Mian, secretary of Ministry of Agriculture signed the Syndicated Murabaha Financing Facility.
The ERD secretary highlighted the importance of ITFC鈥檚 continuous support in various sectors and expressed optimism regarding the organization鈥檚 role in strengthening Bangladesh鈥檚 energy and food security.
Bangladesh imports a huge amount of fertiliser to produce cereal and other crops. It imports over 5.5 to 6.4 million tonnes of fertiliser annually to meet its demand, with the approximate value standing at $1.36 billion in 2023.
Usually, the government imports fertiliser from Morocco, Canada, and Saudi Arabia with money from its exchequer.
With the ITFC financial support, the pressure on foreign exchange reserves would ease to some extent, said the ERD officials.
The signing of these agreements reflects the importance of international partnerships and Bangladesh鈥檚 commitment to achieving its strategic goals and sustainable development.
