Bangladesh announced that the World Bank has pledged over $2 billion in new financing for this fiscal year to assist the nation’s ongoing reform initiatives, flood response efforts, and enhancements in air quality and healthcare, WAM reported citing Reuters.
This announcement came from the World Bank’s Country Director, Abdoulaye Seck, after a meeting with Nobel laureate and interim government head Muhammad Yunus in Dhaka.
Seck’s statement, communicated by Yunus’ office, emphasized that the bank aimed to provide support as swiftly and extensively as possible, highlighting its commitment to addressing Bangladesh’s financial needs during the crucial reforms under the interim administration.
Additionally, the World Bank intends to reallocate $1 billion from existing programs, which will bring the total of soft loans and grants to around $3 billion for the fiscal year ending in June 2025.
These funds will be directed towards critical areas, including disaster response and economic reform efforts.
World Bank Vice President’s visit to Bangladesh
Moreover, Martin Raiser, the World Bank Vice President for the South Asia Region, arrives in Dhaka today.
Over the course of his two-day visit, Raiser will engage with the Honorable Chief Adviser of the Interim Government, the Finance Adviser, the Energy Adviser, the Governor of Bangladesh Bank, and other senior government officials.
The World Bank was one of the first development partners to support Bangladesh following its independence. Since then, it has committed approximately $44 billion to the country, primarily in the form of grants or concessional credits. Currently, Bangladesh has the largest ongoing program backed by the World Bank Group’s International Development Association (IDA).
In October 2016, the World Bank committed $2 billion in funding to assist the country in reducing its vulnerability to climate change.
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