Bangladesh will soon approach the World Bank (WB) for expeditious confirmation of its pledged US$ 500 million budgetary support, officials said Saturday.
"Since the WB is delaying confirmation of its assured US$500 million budgetary support, the government delegation will request the senior WB executives to facilitate its disbursement within this financial year 2014-15," said a Ministry of Finance (MoF) official.
A year ago, the WB had assured Bangladesh of providing the budgetary support. But it has been dragging its feet since then. It might now confirm the support in the FY2016.
A 14-member Bangladesh delegation, to be led by Finance Minister AMA Muhith, will meet the Managing Director and other high officials of the World Bank Group and the International Monetary Fund (IMF) during the Bank's spring meeting on April 17-19.
Economic Relations Division (ERD) officials said, "Bangladesh needs budgetary support for deficit financing during the current financial year. But the WB is likely to provide the assured support next financial year. So, the delegation will request the Bank to provide the aid within this fiscal."
"Besides, the WB has kept aside US$4.5 billion under its IDA-17 financing or Bangladesh for three years (2015-2017). But the fund is not enough to improve the country's infrastructure and social sector," he added.
Usually, the government utilises the concessional assistance of the WB for improving its infrastructure and social sector.
The Bangladesh team will also request the IMF and the International Finance Corporation (IFC), and the WB's another arm MIGA to enhance their supports to Bangladesh.
Another ERD official said since Bangladesh needs huge investment in the coming years to develop its infrastructure and cut poverty, the government will discuss the way forward for getting increased support from the WB.
"How Bangladesh could obtain further support in the coming years ending the recent lukewarm relations between the government and the lender will be discussed in the meetings," he added.
Mr AMA Muhith and his team will meet senior executives including WB Managing Director Sri Mulyani Indrawati, IMF Deputy MD Mitsuhiro Furusawa, and IFC Executive Vice President Jin-Yong Cai during their presence at the WB-IMF spring meeting.
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