Finance Minister AHM Mustafa Kamal on Sunday sought extensive concessional loan from the World Bank to help Bangladesh weather the economic shocks caused by Russia-Ukraine war and the Covid-19 pandemic.Kamal sought the assistance from the International Development Association (IDA), the soft-lending widow of the bank, during a meeting with the visiting World Bank Vice President for the South Asia Region Martin Raiser at Secretariat office, the ministry sources said. Abdoulaye Seck, WB’s newly designated country director for Bangladesh and Bhutan, was also present at the meeting.
The WB officials arrived in Dhaka on Sunday on a 3-day visit to discuss Bangladesh’s request for a new loan to tide over the current economic woes and economic reforms.The visit takes place close on the heels of the International Monetary Fund (IMF) agreeing to lend $4.5 billion to Bangladesh as the country strives to stabilize its declining foreign exchange reserves and the balance of payments. During the visit Raiser will also meet Prime Minister Sheikh Hasina and other senior government officials.
Before the visit Raiser said, “I am glad to be back in Bangladesh and to continue discussing with the government the important reforms that can help the country stay on the resilient and inclusive growth path and create opportunities for the people,” The finance minister thanked the World Bank for working on a Technical Assistance project named “Beautification of Dhaka” to ensure environmental restoration and navigability of rivers around Dhaka city and to enhance the beauty of Dhaka.Kamal also discussed the progress of various projects under implementation with World Bank loan assistance.
Bangladesh has received $1.0 billion in budget support from 2019 to April 2022. It is expected that another $500 million in budget support will be available in the current financial year. Green, Resilience, Inclusive Development (GRID) DPC is expected to get 500 million in the next 2 fiscal years, he said. A loan proposal of $6.15 billion is in the pipeline for the period 2023-2025.
Kamal termed the World Bank as one of the important development partners of Bangladesh adding that since 1972, Bangladesh has received $37 billion in loan and grant assistance from the World Bank. “Of which $26.6 billion have been remitted. We have paid $6.36 billion in interest and principal so far,” he added.
Fatima Yasmin, Senior Secretary of Finance ministry, Sharifa Khan, Secretary of the Economic Relations Division, Guangze Chen, Regional Director, and Dandan Chen, Acting Country Director of World Bank, were present at the meeting.
