As per the officials in Dhaka, the $1.4 billion financing deal between Bangladesh and the International Islamic Trade Finance Corporation will ease Bangladesh's imports of crude oil and is anticipated to take effect this month. During a recent visit by a Bangladeshi delegation to the Saudi port city of Jeddah, the Bangladesh Petroleum Corporation, which manages the import and marketing of petroleum in the nation, signed the agreement with the Jeddah-based ITFC.
“Under this financing agreement we will take a loan of $1.4 billion, mainly to import crude oil,” BPC finance director Kazi Mohammad Mozammel Haque added.
He noted that Bangladesh and the ITFC have previously made similar agreements, with the current financing arrangement running from July 2023 to June 2024. The largest development organization in the Muslim world and one that is also headquartered in Jeddah is the Islamic Development Bank Group, of which the ITFC is a part. Bangladesh imports roughly 100,000 tons of crude oil each month, primarily from Saudi Aramco and the Abu Dhabi National Oil Company, both of which are already connected to the ITFC.
“It’s very convenient for us as Saudi Aramco and ADNOC rely on this lender. That’s why our crude oil imports become smooth.”
In a statement, the ITFC stated that since 2008, it has granted more than $16 billion in loans for Bangladesh to help the nation's energy security, adding that these agreements are a part of its "commitment to support the economic development of its member countries."
“With both parties having agreed to the terms of the financing, this financing plan will ensure the energy security of one of South Asia’s fastest-growing economies,” ITFC said.
“This agreement is a testament to the longstanding successful partnership between the two parties.”