The World Bank has announced to provide loan assistance of about 1 billion dollars to reform the financial sector of Bangladesh.
Bangladesh Bank Executive Director and Spokesperson Husne Ara Shikha confirmed this information to the media on Sunday (September 15).
He said that the World Bank will provide loan assistance of 100 crores or 1 billion dollars to Bangladesh. Out of this, 750 million dollars will be provided as policy based loan and 250 million dollars as investment loan and guarantee facility.
Shikha said that the World Bank board is expected to approve this loan by next December, but Bangladesh has to fulfill three conditions to get the loan.
The Central Bank has said that Bangladesh will have to accept the conditions of setting up an asset management company in the private sector, redefining defaulted loans according to international standards, and presenting the report of the audit firm of the newly formed task force to the World Bank.
Before this, on September 12, the government wrote a letter to the World Bank asking for budget support of about 1 billion dollars. The Economic Relations Department (ERD) wants this money in two installments of $500 million.
A responsible source of ERD then said that a team of the World Bank is coming to Dhaka from the head office of the organization in Washington next week to discuss the budget support. However, the group will discuss various aspects of the economy.
In this regard, it is said from the World Bank's Dhaka office that this week a high-level mission of the World Bank will begin discussions to determine the priorities of the reforms, including possible budget support.
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