Govt, WB sign $250m credit deal today

The government and the World Bank (WB) are set to ink a US$250 million financing agreement today (Wednesday) for implementing the 'First Programmatic Jobs Development Policy Credit'.

Economic Relations Division (ERD) Secretary Monowar Ahmed and the WB Country Director for Bangladesh, Bhutan and Nepal Qimiao Fan will sign the agreement on behalf of their respective sides at a city hotel, according to the WB.

The financing will be available as the first tranche of a proposed $750 million budgetary support under the 'Development Policy Credit (DPC)'.

The remaining $500 million credit is expected to be disbursed in the next two financial years in two equal instalments, depending on fulfilment of the conditions set by the WB, officials said.

The last time the Washington-based lender provided a budgetary support of $175 million was in financial year (FY) 2007-08.

The bank had provided a total of $1.75 billion worth of development support credit (DSC) in six tranches from FY 2003 to FY2008.

The government had completed negotiation with the WB for getting the $250 million worth of DPC in November last year, which would be used mainly for job creation in Bangladesh.

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