The Asian Development Bank (ADB) said it would loan Bangladesh $3 million to improve the country's capital market. The funds would be used to ensure good governance practices in the financial and insurance sectors, the Manila-based bank said in a statement.
The project will strengthen the regulation and supervision of the capital market, improve regulations and provide recommendations to increase demand for and supply of securities by addressing market gaps, said the statement, released late on Friday.
"With better governance and greater investor participation, activities in the capital market and the insurance sector should be revived, and will play a more significant role in mobilising long-term funds for infrastructure and industry, and for spurring economic growth," Sonoma Oh, an ADB Senior Financial and Capital Markets Specialist said in the statement.
The credit would be provided at a rate of 1.5- percent service charge per year repayable in 32 years, including a eight-year grace period.
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