Japan to provide $312m loan to Bangladesh

Japan will provide an Official Development Assistance (ODA) loan of up to 50 billion yen (around US$312 million) to support Bangladesh’s efforts to strengthen fiscal management, improve the investment environment, and ensure stable energy supply.

The loan, co-financed with the Asian Development Bank (ADB), aims to help mitigate the socio-economic impact of global challenges, including rising energy prices and disruptions in supply chains linked to geopolitical tensions.

The exchange of notes for the emergency support loan was signed on Tuesday by Economic Relations Division Secretary Md Shahriar Kader Siddiky and Japanese Ambassador to Bangladesh Saida Shinichi.

Following the signing, a loan agreement was also signed between Chief Representative of the Japan International Cooperation Agency (JICA) Bangladesh Office Takahashi Junko and the ERD Secretary.

Japan reaffirmed its long-standing partnership with Bangladesh, saying it remains committed to supporting the country’s stability, prosperity, and sustainable development under the Strategic Partnership framework.

Officials said the initiative is part of Japan’s broader “POWERR Asia” programme, launched to enhance energy and resource resilience across Asia through emergency support and structural cooperation.

The loan is expected to strengthen Bangladesh’s energy security while also contributing to regional supply-chain stability and expanding cooperation in infrastructure, energy, transport, and investment sectors between the two countries.