The World Bank will provide crucial budget support amid Bangladesh's financial woes, said Finance and Commerce Adviser Dr Salehuddin Ahmed.
“World Bank is our largest lending institution. The government has sought both financial and technical assistance from them,” he said following a meeting with a delegation led by World Bank Regional Director of South Asia Matthew A Verghis held at the secretariat on Tuesday (17 September).
"One of the major challenges the Awami League government has left for the interim administration is the severe financial distress. The country’s foreign currency reserves now stand at $20 billion, less than half of what they were two years ago," he added.
"Additionally, the government faces pressure to repay loans from China, Russia, and other donor agencies for mega infrastructure projects and the import of power and energy," the adviser further said.
Since assuming office, the interim government led by Dr Yunus has been engaging in a series of meetings with various donors to secure new loans.
Additionally, the administration is reviewing the interest rates on loans taken from China and Russia, Dr Salehuddin said.
Referring to the meeting with the World Bank, Dr Salehuddin added, “Today, we had a regular and ongoing discussion with the World Bank. They are our largest lender, and we have asked for both financial and technical assistance from them. We need support for our reforms, and we urgently need budgetary assistance. We have also requested liquidity support, which they have agreed to provide. Outside of the current package, I have requested additional help, and they have also agreed. Their attitude has been generally positive, and they were quite open in the discussions.”
When a journalists mentioned that the government has requested a total of $2 billion in aid, Dr Salehuddin refrained from specifying the exact figures.
“I won’t speak of billions or specific amounts in taka. For this year, they will provide budgetary support. We have expected more, but what we receive will depend on the specific projects we undertake,” he explained.
