2024-09-17 14:34:27
The World Bank and the Asian Development Bank (ADB) will provide 250 million US dollars (two and a half billion dollars) of loan assistance to Bangladesh. Out of this, World Bank will give 100 crores or one billion dollars and ADB will give 150 crores or one and a half billion dollars. This loan can be used as a support for the modernization and capacity building of Bangladesh Bank including banking sector reforms.
On Sunday (September 15), Bangladesh Bank had a separate meeting with the two financing cooperatives. Bangladesh Bank Spokesperson Husne Ara Shikha said that the loan assistance was assured in the meeting.
He said that the World Bank has announced to provide loan assistance of 100 crores or 1 billion dollars under three conditions for the reform of the bank and financial sector of Bangladesh. But now the World Bank will give 750 million dollars for policy assistance. This support will be available in December. And another 250 million dollars loan assistance will be given as investment loan and guarantee facility. But it will take more time to get it. In addition, ADB will provide $1.5 billion. First will give 50 million dollars. The next two phases will make another 50 million dollars.
He also said that Bangladesh has to fulfill certain conditions to get the loan. These include the creation of asset management companies in the private sector, new definitions of defaulted loans in international standards and the audit firm’s report on the newly formed task force. However, 50 percent of the conditions have already been reformed.
Meanwhile, in the afternoon, the Governor of Bangladesh Bank met with Brent Neiman, Assistant Undersecretary for International Financial Affairs of the United States Department of Revenue and Finance. Ahsan H Manusar. The meeting discussed how to improve the macro economy. In this, various issues including inflation, money laundering and growth come up. The governor informed about the various steps taken by the central bank in view of the overall situation to protect the stability of the country’s economy. Meanwhile, the governor was assured that the United States will provide all kinds of support to reform the financial sector.
Sheikh Hasina left the country after resigning from the post of Prime Minister on August 5 in the face of the unforgettable coup of the students. Through this, 16 consecutive years of Awami League’s unprecedented misrule and arbitrariness came to an end. After the change in the political landscape of the country, the new interim government emphasized on reforming the banking sector. This government has appointed economist Dr. as the governor of the central bank. To Ahsan H. Mansoor. After that, the board of directors of 10 banks and 1 financial institution was reconstituted. Of these, 9 were owned and controlled by the much-discussed influential S Alam Group. From these banks, S Alam Group has taken out about two lakh crore rupees, which the banks whose board has changed are worried about recovery. Due to liquidity crisis, the normal transaction activities of these banks have already stopped. The salaries of the officers of these banks have also become irregular.
For this, instead of forming a commission to reform the banking sector, the government is planning to quickly form three task forces. Because, it will take a long time to form the commission and make recommendations and implement it. Instead, the regulator wants to start reforms soon through a task force. One of the task forces will be on non-performing loan management and another on strengthening Bangladesh Bank. Another task force will be on repatriation of smuggled money.
It is known that, for the task forces to play a proper role in the banking sector reform, efforts will be made to take domestic and foreign technical knowledge and assistance. Bangladesh is trying to collect the required amount of money from low interest foreign sources. The World Bank and ADB have responded to it.