A loan agreement on "Climate Resilient Inclusive Development Programme (Subprogram 1)" amounting to US$90 million was signed between the governments of Bangladesh and South Korea on Monday.

Md Anwar Hossain, wing chief and additional secretary of the Economic Relations Division, and Hwang Kiyeon, executive director of Korea Eximbank, signed the loan agreement on behalf of the Bangladesh government and Korea Eximbank, respectively, according to a press release.

The Finance Division, along with other relevant ministries, has formulated the policy reform programme, it said.

The programme scope includes mitigating greenhouse gas emissions, transitioning to a low-carbon economy, facilitating a sustainable and climate-focused development pathway, strengthening resilience, and reducing risk and vulnerability to adverse climate change impacts.

According to the loan agreement, the objectives of this programme have already been achieved.

Since 1993, on behalf of the South Korean government, the Korea Eximbank has been providing soft loans to various priority development sector projects in Bangladesh. Under this loan agreement, this loan will bear a simple interest rate of 0.5% per annum, while the maturity period will be 25.5 years, including a grace period of 7.5 years, added the release.