World Bank (WB) Group President Ajay Banga has said the global lender would provide $3.5 billion to support the reform initiatives of the interim government of Bangladesh, including reforms in the financial sector.
Banga made the announcement during a meeting with Chief Adviser Professor Muhammad Yunus on the sidelines of the 79th United Nations General Assembly (UNGA) at the UN Headquarters in New York City on Wednesday (local time).
Banga, a long-time friend of Prof Yunus, said at least $2 billion would be provided as fresh lending while another $ 1.5 billion would be repurposed from the existing programmes.
The WB would support reforms in digitisation, liquidity, energy, power and transport sectors in Bangladesh, said the Chief Adviser's Press Secretary Shafiqul Alam quoting the World Bank president.
During the meeting, Prof Yunus sought the World Bank’s support for the wide-range reforms the interim government has undertaken.
He urged the WB to be creative about its lending programme. "It is a big opportunity to rebuild the country," he said.
The WB president discussed the energy sector cooperation in South Asia and how hydro energy produced in Nepal and Bhutan could be shared by neighbours such as India and Bangladesh.
Energy and Power Adviser Fouzul Kabir Khan was present at the meeting.
Earlier, during a meeting with Yunus on September 17, the World Bank’s Country Director Abdoulaye Seck said the global lender was committed to increasing lending to Bangladesh in this fiscal year to help the reform agenda of the interim government.
He had also informed that the World Bank can mobilise about $2 billion new financing in this fiscal year to support critical reforms, flood response, better air quality and health.
"We would like to support you as fast as possible and as much as possible," Seck said, adding that the bank would support the critical financial needs of the country.
He said the completion of the reforms would be "critically important" for Bangladesh and its young people, including the two million people who are joining the job market every year.
At the time, Yunus told Seck the WB must have flexibility to fund Bangladesh's reforms and help restart a new journey after 15 years of "extreme misgovernance."
"Out of these ashes, we have to build new structures. We need a big push, and we have to focus on the dreams of the students," he said. "I will suggest, help us. Be a part of our team."
Yunus also asked the WB to lend its technical support to recover billions of dollars of stolen assets siphoned off from Bangladesh by corrupt individuals during Hasina's 15-year-long dictatorship.
Seck agreed to help Bangladesh bring back the stolen money, saying, "We are happy to help you.”
