Japan aims to streamline the fund disbursement process to Bangladesh by requesting permission to open a single ‘Grant Aid Projects Account’ in a Japanese bank for managing funds across multiple projects. The move is prompted by the current complexity of opening separate bank accounts for each project, causing delays.
The Embassy of Japan in Dhaka has proposed this change to the Economic Relations Division (ERD) to enhance efficiency and expedite project implementation. If approved, this method is expected to significantly shorten the period from the exchange of notes to project initiation, facilitating smoother fund transfers and faster project execution. The ERD is currently seeking opinions from the Finance Division and the central bank before responding to Japan’s proposal.