A sum of US$250 million may come soon from the Asian Development Bank (ADB) to Bangladesh as budgetary support, officials say.
An ADB mission has recently given the green signal to Bangladesh following a spot review of the needs, according to the officials.
Under the Strengthening Social Resilience Programme (Sub-Programme-2), the Manila-based lender completed a mission before the Eid vacation in a bid to explore the possibility of providing the budget support.
"The ADB has assured us of providing the budget support. We are hopeful of getting the loan within a couple of months," says a senior Economic Relations Division (ERD) official.
He says the funding is specifically earmarked for the Strengthening Social Resilience Programme (SSRP) aimed at protecting vulnerable populations against global economic volatility and climate-induced shocks.
The budgetary support-confirmation decision followed the weeklong fact-finding mission that concluded its review of the government's policy reforms.
This sub-programme builds on previous phases that have already digitised social-protection payments and expanded coverage to millions of beneficiaries in rural and urban areas.
"The ADB mission sat with relevant government ministries and agencies. They have also sat with us in the wrap-up meeting. The mission assured us of providing the support at the shorter possible time," another ERD official told the FE.
"We are hopeful of signing a loan deal within the couple of months to get release of the funds into the government exchequer," he added.
Meanwhile, the ADB provided another $250 million loan last fiscal year to facilitate government's social-safety-net programme.
The proposed $250 million budgetary credit is designed as a Policy-Based Loan (PBL), meaning the funds are disbursed as the government meets specific reform milestones.
The loan will be focused on the integration of the climate-risk data to identify and support households most vulnerable to floods and cyclones.
Besides, strengthening the Government-to-Person (G2P) payment system to ensure cash transfers reach disadvantaged women and the elderly directly via mobile financial services, reducing "leakages" in the system through advanced digital verification and the harmonization of various social programmes under a single registry would be ensured.
Expanding mobile clinics to provide essential healthcare to the "floating" or homeless populations in major city corporations would also be funded.
The ADB mission has emphasized that this budgetary support arrives at a critical juncture as Bangladesh prepares for its energy security and official graduation from least-developed country (LDC) status later this year.
The Ministry of Finance indicated that the funds would help ease fiscal pressure, allowing the government to maintain its commitment to the National Social Security Strategy (NSSS) despite global inflationary pressures.
This $250 million is part of a larger, multi-year engagement where the ADB remains one of Bangladesh's primary development partners, with a current active portfolio exceeding $11 billion.
