Bangladesh seeks $1b in budget support from WB

Bangladesh has sought $1 billion in budgetary support from the World Bank (WB), including $250 million assistance as Development Policy Credit (DPC) for the second instalment and new $750 million for Green, Resilient, and Inclusive Development (GRID).

Bangladesh Bank (BB) Governor Abdur Rouf Talukder made the disclosure at a press conference after the annual meeting of the International Monetary Fund (IMF) and the WB held in Washington DC on Friday.

The discussion over the $4.5 billion loan from IMF’s Resilience and Sustainability Trust (RST) has been fruitful and placed at the concerned high officials’ table, he said.

The RST helps low-income and vulnerable middle-income countries build resilience to external shocks and ensure sustainable growth and contribute to their longer-term balance of payments stability.

The governor said the discussion with both organisations was fruitful and they hope the procedures will move forward when the concerned officials of WB and IMF come to Dhaka.

Meanwhile, the WB has formed a fund worth $170 billion for partner countries to combat economic strain and exigency, said WB President David Malpass at the meeting’s closing ceremony on Friday.

He said they plan to provide assistance from the fund in the next 15 months to combat financial and economic instability. Out of the total, he added, $30 billion will be spent to secure food production.

Coherently, the IMF will also provide $6 billion in financial assistance to the private sector to ensure food security.

Malpass said development activities in different countries not only have halted but also are going the opposite way.

IMF Managing Director Kristalina Georgieva echoed his concerns, saying that world leaders are leading the world into a big crisis. There was no pressure regarding interest rates and there was global peace even two years back.

But now the world is going through an unprecedented uncertain situation, she said.

Geopolitical hardship and conflict are pushing the world towards unhealthy conditions, she stated, adding that the WB and IMF will continue providing financial aid to battle the global economic crisis.