Finance minister seeks low interest loans from World Bank

Finance minister seeks low interest loans from World Bank

Finance Minister Mustafa Kamal has sought loans at low interest from the International Development Association (IDA) fund of the World Bank to offset the economic fallout arising from Covid-19 pandemic and the Russia-Ukraine war.

The minister made the request after World Bank Vice President for the South Asia Region Martin Raiser paid a courtesy call on him at the Secretariat Sunday (13 November).

Abdulaye Sek, World Bank's Country Director for Bangladesh and Bhutan, accompanied Martin Raiser on a three day visit to Dhaka.

The finance minister welcomed the initiative of IDA 20 cycle, a global coalition of development partners who agreed on a historic $93 billion financing package scheduled for July 2022 to June 2025 to help low-income countries respond to the Covid-19 crisis and build a greener, more resilient, and inclusive future.

The minister noted that IDA 20 will be very helpful in revitalising the economies of IDA countries.

Referring to the $1 billion budget support Bangladesh received from 2019 to April 2022, the minister expressed his hope that another $500 million budget support will be available in the current financial year.

He expected to receive a total of $500 million under the DPC of Green, Resilience, Inclusive Development (GRID), with an yearly grant of $250 million in the next two years.

A loan proposal of $6.15 billion is in the pipeline for the period 2023-2025.

He also discussed the progress of various projects under implementation with World Bank loan assistance.