2024-09-18 13:45:36
Bangladesh has sought loan assistance from the World Bank as part of financial sector reforms and budget support. Financial adviser Salehuddin Ahmed demanded that the conditions given by the World Bank to get this loan should be feasible.
The Financial Advisor made this claim during a meeting with World Bank South Asia Country Director Matthew A. Virgins at the Financial Advisor’s office on Tuesday (September 17). After the meeting, he informed the journalists.
Dr. Salehuddin Ahmed said, we have said that we need budget support for the reforms. The World Bank is our biggest donor as a multinational. So they need help. Talked about our liquidity. They agreed. I will speak again in Washington. Today’s discussion is fairly positive. They are open minded. Further discussion will follow. The discussion will be mainly, how we will reform.
What did they say about budget support? In response to this question of the journalists, the finance advisor said, we have asked for budget support for this year and next year. Hope to get it.
The World Bank has given any conditions or not? In response to this question, he said that the issue of conditions will come when the loan will be given. How many steps should we take? We will see if it is feasible or not. Do not make conditions that we cannot fulfill. We have directly stated that the necessary steps to implement the reforms are to be taken.
According to a source of Bangladesh Bank, the World Bank will provide 100 million dollar loan assistance to Bangladesh to reform the financial sector. Out of this, 750 million dollars will be provided as policy based loan and 250 million dollars as investment loan and guarantee facility.
The loan is expected to be approved by the World Bank board by next December. However, Bangladesh has to fulfill three conditions to get the loan. These are – Private sector assessment management company, new definition of defaulted loans in international standards and newly formed task force to submit audit firm’s report to the World Bank.
The financial advisor was questioned by the journalists, Bangladesh Bank said that the World Bank will give a loan of 1 billion dollars for the reform of the financial sector. In response to this, Saheluddin Ahmed said, “If Bangladesh Bank has said, I will not say anything about it.”