The state-run oil marketing arm BPC is set to receive a costlier loan of US$ 1.20 billion from the International Islamic Trade Finance Corporation (ITFC) to import petroleum products in the calendar year 2020.
Officials said the Bangladesh Petroleum Corporation (BPC) negotiated the loan at an interest rate of 4.50 percent, which the ITFC calls a mark-up rate.
The rate is higher by 0.70 percent from the mark-up rate of 3.80 percent of the calendar year 2017.
The new mark-up rate will take effect from next year, if the government agency concerned approves the BPC loan deal with the ITFC, according to a BPC document.
The ITFC is an autonomous entity within the Islamic Development Bank Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world.
A high-powered delegation of the state-run agency BPC met in a meeting with the ITFC on June 24-25 last at Jeddah in the Kingdom of Saudi Arabia (KSA).
In the meeting they agreed to receive the loan to the tune of US$ 1.2 billion (1200 million) from the ITFC.