$500m ADB budgetary support for Bangladesh

The Asian Development Bank (ADB) would give Bangladesh $500-million budget support meant for facilitating its economic recovery, ADB country director Edimon Ginting said on Thursday.
The budget support would be provided to facilitate the government's multiple reforms and policies on climate change, he said after a meeting with planning minister MA Mannan in Dhaka.
About the lending rate of the proposed aid, Mr Ginting said the rate could now be fixed at 0.5 per cent.
Bangladesh would have a grace period of three years and 15 years to reach maturity, he added.
The government early this year sought $1.0-billion budget support for the recovery of the losses from the impacts of the Covid-19 pandemic.
After the meeting, Mr Ginting told reporters that "Although global uncertainty had affected the Bangladesh economy slightly, I hope it would recoup the impact."
Minister Mannan said the ADB loan would be helpful in rehabilitating the flood-affected people in Sylhet region.
Asked about the budget support, both Mr Ginting and Mr Mannan said the terms and conditions of the loan were still to be fixed.
The conditions will be fixed in consultation with both sides on the proposed budgetary support.

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