June 19, 2026

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Japan will provide $312 million in emergency loan assistance to help Bangladesh stabilize its economy

Diplomatic Desk:

On Tuesday (9 June, 2026) Mr. SAIDA Shinichi, Ambassador of Japan to Bangladesh, and Mr. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division, Ministry of Finance, signed the Exchange of Notes for Japan’s Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply to the Government of the People’s Republic of Bangladesh.

Following the signing of the Exchange of Notes, Ms. TAKAHASHI Junko, Chief Representative of JICA Bangladesh Office, and Mr. Siddiky signed the Loan Agreement.

With these agreements, Japan will provide a Japanese ODA loan of up to 50 billion yen, approximately USD 312 million, to Bangladesh. This timely support, co-financed with the Asian Development Bank (ADB), aims to help mitigate the socio-economic impact of recent global challenges, including rising energy prices and uncertainty in energy supply caused by the deterioration of the situation in the Middle East.

Through this loan, Japan will support the Government of Bangladesh’s efforts to strengthen fiscal management, improve the investment environment, and ensure stable energy supply, which are essential for sustaining economic stability, reform momentum, and long-term resilience.

Ambassador SAIDA stated that today’s signing is a clear demonstration of Japan’s unwavering partnership with Bangladesh at an important juncture. He underlined that Bangladesh is a key partner of Japan under the Strategic Partnership between the two countries and for realizing a “Free and Open Indo-Pacific,” and reaffirmed Japan’s commitment to supporting Bangladesh’s stability, prosperity, and sustainable development.

This loan also has regional and strategic significance. It is the first Japanese ODA loan project under “POWERR Asia,” launched by Prime Minister TAKAICHI Sanae at the AZEC Plus Online Summit on Energy Resilience in April 2026, in which H.E. Mr. Tarique Rahman, Prime Minister of Bangladesh, also participated.

POWERR Asia aims to strengthen energy and resource resilience across Asia through both emergency responses and structural cooperation, including support for energy procurement, supply-chain maintenance, energy diversification, and industrial resilience.

By supporting Bangladesh’s economic and energy stability, this loan is expected not only to help Bangladesh but also to contribute to strengthening the resilience of supply chains across Asia, including those connected to Japan.

It is also expected to further promote a wide range of Japan-Bangladesh cooperation projects under the Strategic Partnership, including quality infrastructure, energy, transport, trade and investment, human resource development, and private sector cooperation.

Japan has consistently stood by Bangladesh since its independence and remains committed to working closely with the Government and people of Bangladesh as a trusted partner for its stability, prosperity, and development.

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