The World Bank is expected to give Bangladesh $250m as budgetary support in the next fiscal year against the country’s demand of $500m, said Finance Minister AMA Muhith.
“Although we sought $500m, the World Bank is likely to give us $250m in the maximum,” he told journalists after a meeting with the WB Senior Vice President Kyle Peters at WB-IMF annual meetings at the Peruvian capital Lima yesterday, as reported by private Channel i TV station.
At the last year’s WB-IMF annual meetings, Bangladesh had sought $500m for the FY2015-16. The World Bank last offered such assistance under its budgetary support programmes in 2008.
“This has been seven years since we got such type of support from the global lender. While we asked for the budgetary support, the Bank also expressed its intention to give,” said finance minister.
He said there were no conditions attached to the support and the government would be free to spend the money on any sector through the budget.
Muhith said the IFC already started the process to issue the Taka Bond worth $1bn and the funds would be spent on the country’s infrastructure development.
“There are no problems with issuing of the $1bn Taka Bond by the IFC (International Finance Corporation).
According to a World Bank press release, the meeting also discussed the World Bank’s growing portfolio in Bangladesh, which in this fiscal year included new financing commitments amounting to $1.9bn and disbursements of almost $1bn.
It said there were also discussions on the government’s progress in advancing various reforms, including in the areas of taxation, standards, and companies, that are intended to improve the investment climate. The reforms, if passed, could be supported by a World Bank development policy operation.
During the meeting Peters expressed his intention to visit Bangladesh in the near future.