DHAKA (Reuters) - The Jeddah-based Islamic Development Bank (IDB) has agreed to loan $1.6 billion to Bangladesh to import oil in 2011, a senior official said Sunday. The IDB confirmed its assistance last week following talks with concerned Bangladesh officials including the central bank governor Atiur Rahman, said Anwarul Karim, chairman of the state-run Bangladesh Petoleum Corporation He said BPC had sought a $2 billion loan from the IDB to buy 5 million tonnes of petroleum products. It also asked for $357m in govt subsidy to meet its financial needs. "We will need $3.5b to procure the oil for the coming year," the official told Reuters. BPC is the lone oil importer and distributor in the country. The IDB provided $1.2b to BPC this year with interest rates between 5p and 5.5pc oil imports will rise at least by 14pc to about 5.0m tonnes in 2011 especially to run new oil-based power plants.