The World Bank will provide US$2.30 billion in assistance, including $750 million budgetary support, to Bangladesh this fiscal year (FY 2024-25), mainly to facilitate financial-sector reforms and recovery from flood damages, officials said on Thursday.
A senior executive of the WB assured Bangladesh of the credit at separate meetings with Chief Advisor Professor Muhammad Yunus and Finance Advisor Dr Salehuddin Ahmed in Dhaka on Thursday.
Some of this amount will be given as budget support, while the rest will be allocated to various important projects in the health and energy sectors, Mr Martin Raiser, visiting WB Vice President for South Asia, told reporters after the meeting with the finance advisor.
Additionally, further support will be provided for other projects based on the needs of the Bangladesh government, he added.
"The final decision on the loans will be made during the Bank's upcoming board meeting. The possibility of providing some $2.0 billion assistance for the current fiscal year is being examined," he said.
A WB spokesperson said this loan will be a regular one like the previous years for supporting Bangladesh's development and reforms.
Meanwhile, the Washington-based lender made a record highest commitment of $3.4 billion for the last FY '24, up from $2.3 billion in FY2023.
Mr Raiser said Bangladesh has the opportunity to implement critical reforms that were unaddressed for a longtime.
"Through existing and new investments, we are focusing on improving economic governance and creating more and better jobs for the 2.0 million Bangladeshi youth entering the job market every year," he added.
Raiser highlighted the substantial resources available to Bangladesh from the existing portfolio of the World Bank-financed projects, which could be repurposed as needed to provide additional funding for the government's most urgent priorities to set the country on a new sustainable growth path.
The financing will help Bangladesh enhance economic resilience, recover from the recent flood, undertake public and financial sector reforms for better service delivery, build a clean energy sector, and improve air quality and health outcomes.
Meanwhile, Finance Advisor Dr Salehuddin Ahmed told journalists that the discussions covered various topics with the World Bank, such as budget support, health and energy, fertiliser imports, and food self-sufficiency.
Issues like post-flood rehabilitation and the Rohingya crisis have also been discussed, he added.
Mr Ahmed mentioned that the WB is very positive about those matters and that the areas of support are now quite clear. The World Bank will also coordinate with other organisations to finance Bangladesh, he added.
The reforms Bangladesh has undertaken seemed credible to the World Bank, DR Ahmed said.
Meanwhile, Mr Raiser expressed his condolences for the tragic loss of lives in July and August during the meeting with the Chief Advisor and the finance advisor, said a WB press release on Thursday.
The WB is in discussions with the health ministry to provide urgent support for the treatment of the critically injured students and affected individuals.
Further, the World Bank will support rehabilitation and livelihood restoration to the people affected in the recent flood in eastern districts, the WB said.
He also conveyed appreciation for Bangladesh's generous decision to continue providing shelter to about a million displaced Rohingya people fleeing violence in Myanmar.
The World Bank has recently approved a $700 million programme for the displaced Rohingya and the host communities.
Mr Raiser also met the Energy Adviser and Bangladesh Bank Governor and discussed critical reforms aimed at helping build economic resilience, safeguard financial sector stability, and improve governance, transparency, and accountability.
Abdoulaye Seck, the World Bank's country director for Bangladesh, also attended the meetings.
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