World Bank is ‘positive’ about new $2 billion loan support to Bangladesh

Some part of the funding can be used as budgetary support, says Reiser, the regional vice president of the bank for South Asia

Martin Reiser, the regional vice president of the World Bank for South Asia, has given positive hints about giving a new $2 billion loan to Bangladesh in the current fiscal year.

Signalling that some part of the new funding will be provided as budgetary support, Reisar said the rest of the money could be allocated to key projects, health and energy sectors. But it all depends on the approval of the board, he said.

A delegation of the bank, led by Reiser, met Finance Advisor Salehuddin Ahmed at the Secretariat on Thursday.

While speaking to the media after the meeting, Reiser highlighted the interest of the World Bank in providing assistance to Bangladesh. He also hinted the new support will be more than $2 billion beyond ongoing projects and loan negotiations.

He said, “This is an important time for Bangladesh. We have discussed many issues including the bank sector with the advisor. We are glad to hear of the reform plans. We talked about how the World Bank can be involved in the plan in a collaborative spirit.

“We have been working with Bangladesh since its inception. We want to continue this cooperation.”

Salehuddin said he discussed additional financing with another delegation from the World Bank two days ago on Tuesday.

He spoke about budgetary and liquidity support after discussions with a delegation led by Mathew Varghese, director of the organisation’s South Asia region, to take forward the reform proceedings.

The Washington-based global lending agency came up with the interest in providing fresh aid to the new interim administration after the fall of the Sheikh Hasina government in the face of a massive civil uprising.

Several delegations of the World Bank have been meeting with government advisors over the past few days. The members of the Reiser-led team are now meeting with policymakers in continuation of that.

Reiser is also scheduled to hold meetings with interim government head Muhammad Yunus and Energy and Railways Advisor Fouzul Kabir.

However, the bank’s Country Director Abdoulaye Seck committed an additional $2 billion in loans this fiscal year during a meeting with the chief advisor on Tuesday.

After the meeting with Reiser, Salehuddin told the media that the delegation was very positive, adding that the agendas of the cooperation have reached a final stage.

“Budgetary support, health and energy sector, fertiliser import, food security, post-flood and Rohingya rehabilitation issues were discussed. The financing of other donor agencies will be coordinated by the World Bank and it will provide both funding and technical assistance," he said.