The government has signed a $289.52 million loan agreement with the Islamic Development Bank (IsDB) for the second phase of the "Rural and peri-urban housing finance project".

The five-year project aims to extend provide affordable housing loans for the construction of sustainable, eco-friendly multi-storied residential buildings for the low and lower-middle-income population in rural and peri-urban areas of Bangladesh, according to a statement of the Economic Relations Division (ERD).

"It is expected to conserve cultivable land and strengthen the capacity of the Bangladesh House Building Finance Corporation in its housebuilding loan financing activities."

ERD Secretary Md Shahriar Kader Siddiky and IsDB Vice President Mansur Muhtar signed a deal in this regard at the IsDB annual meeting in Riyadh on April 29.

Finance Minister Abul Hassan Mahmood Ali and IsDB Chairman Muhammad Al Jasser were also present.

The IsDB, a multilateral development partner of Bangladesh, continues to support the socio-economic development of the country through various forms of financial assistance, the statement read.