ADB to provide $500 million

The Asian Development Bank (ADB) will provide $500 million budget support to Bangladesh for economic recovery and tackling climate change.

“ADB provided the same amount of budget support to Bangladesh in the last two fiscal years. Continuing their support, ADB will give $500 million budget support to Bangladesh in this fiscal year,” Planning Minister MA Mannan said after ADB’s Country Director Edimon Ginting called on him at the planning ministry on Thursday.

Mannan said interest of the loan has been fixed at 0.5 per cent. Bangladesh will have a grace period of three years and the country will get 15 years to repay the loan.

He also said this loan will be helpful in the rehabilitation of the flood-affected population.

“We are successful in dealing with the current economic situation. We have successfully reduced costs of different projects under the leadership of the Prime Minister. ADB praised the strategy of dividing the development projects into three categories,” he added.

“Budget support is available at any time. There will be some conditions under discussion. For example, if you borrow money, when will it be paid, that is also a condition,” he also said.

Edimon Ginting said this loan will be given for economic recovery and tackling climate change. The current global economic instability poses many challenges and Bangladesh’s financial management is successfully meeting the challenges. “We have discussed about taking up an urgent project for the development of flood-damaged infrastructure in Haor area,” Ginting added.

“This is an important project. The Prime Minister herself wants such a project. Along with dealing with climate, Sylhet has suffered huge damage due to severe floods. ADB will also support the rehabilitation of these areas,” Mannan noted.