The World Bank and the Asian Development Bank will provide Bangladesh with $2.5 billion in loans to help Bangladesh’s efforts to reform the banking and financial sectors.
Of the amount, the World Bank (WB) will contribute $1 billion and the Asian Development (ADB) $1.5 billion.
The lending issued were discussed during separate meetings between Bangladesh Bank (BB) and the two global lenders on Sunday, said the central bank’s spokesperson Husne Ara Shikha.
She said, “The World Bank has committed $1 billion in loan assistance to support Bangladesh’s reforms in banking and financial sectors.
“Of this, $750 million will be disbursed as policy support by December, while $250 million will come as an investment loan and guarantee facility, though this will take more time. Moreover, ADB will provide $1.5 billion in three phases, starting with $500 million.”
The loans would be provided after approval from the boards of the Washington and Manila-based global lenders, with Bangladesh receiving the funds under policy-based loans, or PBL.
Meanwhile, Bangladesh would need to meet several conditions to receive the loans, including forming an asset management company in the private sector, redefining non-performing loans according to international standards, and completing audit reports from a newly established task force.
