DHAKA, June 10, 2026 (BSS) - Bangladesh has signed a US$250 million loan agreement with the Asian Infrastructure Investment Bank (AIIB) to provide budget support under the "Strengthening Economic Management and Governance Program (SEMGP) - Subprogram 2."

The agreement was signed on Tuesday by Additional Secretary of the Economic Relations Division (ERD) of the Ministry of Finance, Md. Ahsan Kibria Siddiki, on behalf of the Government of Bangladesh, while Director General of the Public Sector Clients Department Region-1 of AIIB, Rajat Misra, signed on behalf of the multilateral lender, said a press release today.

The financing constitutes a key tranche of a proposed US$750 million policy-based lending package being processed under AIIB's Emergency Response Support Facility.

The budget support is intended to help Bangladesh address mounting global economic challenges, particularly the adverse effects stemming from ongoing conflicts in the Middle East. 

The assistance will support the government's efforts to meet essential public expenditure requirements and external financing needs amid heightened geopolitical uncertainties.

The programme is expected to contribute to maintaining macroeconomic stability, advancing structural reforms, strengthening domestic resource mobilization and revenue consolidation efforts, and safeguarding critical social and infrastructure spending.

It will also help enhance the country's institutional resilience against external economic and geopolitical shocks.

The government reiterated its commitment to pursuing necessary policy reforms and maintaining prudent macroeconomic management to ensure sustainable and inclusive economic growth.

The SEMGP is being implemented through a joint financing arrangement with the Asian Development Bank, reflecting continued support from development partners for Bangladesh's economic reform agenda.