WB to provide $3.5b to support Bangladesh’s reform initiatives
Of the loans, $1.5 billion to be repurposed from existing programmes
The World Bank will provide Bangladesh with a $3.5 billion loan in the current fiscal year to support the interim government's reform initiatives, including those for the financial sector.
Of the amount, at least $2 billion will be fresh lending and another $1.5 billion will be repurposed from the existing programmes, World Bank President Ajay Banga has said.
The World Bank president announced the support during a meeting with Chief Adviser Professor Muhammad Yunus on the sidelines of the UN General Assembly at the UN Headquarters in New York on Wednesday afternoon (New York time), agencies report.
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The World Bank will support reforms in digitisation, liquidity, energy and power, and transport, said Chief Adviser's Press Secretary Shafiqul Alam, quoting the World Bank president.
Banga, a long-time friend of Prof Yunus, discussed the energy sector cooperation in South Asia and how hydroenergy produced in Nepal and Bhutan could be shared by neighbours such as India and Bangladesh.
Yunus sought the World Bank's support for the wide-range reforms his interim government has undertaken.
He asked the World Bank to be creative about its lending programme.
"It is a big opportunity to rebuild the country," Prof Yunus said.
Energy and Power Adviser Fouzul Kabir Khan was also present during the meeting.
Earlier on 17 September, the World Bank's Country Director Abdoulaye Seck in Dhaka pledged to mobilise up to $2 billion in new financing this fiscal year.
During a meeting with Chief Adviser Yunus, Seck also said the multilateral lender would repurpose about an extra $1 billion from its existing programmes bringing the total loans and grants to $3 billion.
Now, with $1.5 billion being repurposed from the existing programmes, the total soft loans and grants from the World Bank to Bangladesh this fiscal year would be $3.5 billion.
The World Bank has extended $42 billion financial support to Bangladesh since 1972, including $2.62 billion in FY24. The global lender provided $500 million as budget support last fiscal. Its current commitment is $16 billion for 53 ongoing projects.
