Accord signed with WB on $200m DSC-IV

FE Report

Bangladesh signed Saturday an agreement with the World Bank (WB) on the development support credit-IV (DSC-IV) worth US$200 million to bolster its reform efforts in the areas of macroeconomic stability, trade liberalisation, and better functioning of financial and power sectors.

M. Aminul Islam Bhuiyan, Secretary, Economic Relations Division and Xian Zhu, World Bank Country Director signed the agreement at the National Economic Council (NEC) Auditorium of the Planning Commission, said a WB press release.

Mirza Azizul Islam, finance and planning advisor and Praful C. Patel, the visiting Vice President, South Asia Region, World Bank were present at the signing ceremony.

This budgetary support from the WB will also be used to undertake reforms in core governance functions such as public financial management, the Anti-Corruption Commission, and tax administration.

Appreciating the WB's role in speeding up the release of the DSC-IV Mirza Azizul Islam said: "This will strengthen the government's reforms agenda and will brighten prospects for stronger economic growth, improved governance, and faster poverty reduction in Bangladesh."

Commending the government's commitment for attaching the highest priority to broad-based governance reforms, Patel said: "Over the longer term, these reforms are expected to improve public service delivery, reduce systemic corruption, and strengthen the business environment."

Highlighting the apparent economic and social benefits associated with the reform programme supported by the DSC series, Zhu hoped that Bangladesh would continue to implement significant reforms producing results in the form of much-improved development outcomes.

With this, the WB has now provided US$1.1 billion in policy-based credits to Bangladesh since 2003, including US$200 million credit in support of education sector reforms.

Another WB US$ 100 million development support credit for education sector reforms is forthcoming.

The credit from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period; and it carries a service charge of 0.75 percent.