A need to properly utilise IDB assistance
Ishrat Mahmood | Sunday, 1 March 2009
THE fund provided by the Islamic Development Bank (IDB) needs to be better utilised. The government needs to seriously address the issue as the resources from abroad are drying. The IDB has, time and again, assured Bangladesh of its support when loans and grants are declining from the traditional donor countries and organisations like the World Bank (WB), the International Monetary Fund (IMF) and the Asian Development Bank (ADB). Besides, the terms and conditions for getting the resources are proving to be increasingly difficult.
Bangladesh was expected to get $2.0 billion out of a special IDB solidarity fund over a period of ten years. This assistance would otherwise be considered valuable for Bangladesh when foreign funding support to it is dropping.
The IDB assistance could be useful over the short-, medium- and long-terms under favourable terms and conditions.
Three agreements were signed over one and a half years back for providing to Bangladesh $9.19 million in grants and loans. It was a good support at a time, when the traditional western donor countries and organisations discourage grants. Moreover, the lending rate of IDB and its loan repayment period are more favourable for the recipient countries.
But the assistance from the IDB would depend on proper utilisation of the new opportunities. The IDB would, in that case, be in a position to step up its assistance to Bangladesh from its solidarity fund. Already, IDB has pledged a substantial amount of assistance out of the fund. But making good and timely use of the resources will depend on the efficiency of the executing agencies in Bangladesh.
Bangladesh was expected to get $2.0 billion out of a special IDB solidarity fund over a period of ten years. This assistance would otherwise be considered valuable for Bangladesh when foreign funding support to it is dropping.
The IDB assistance could be useful over the short-, medium- and long-terms under favourable terms and conditions.
Three agreements were signed over one and a half years back for providing to Bangladesh $9.19 million in grants and loans. It was a good support at a time, when the traditional western donor countries and organisations discourage grants. Moreover, the lending rate of IDB and its loan repayment period are more favourable for the recipient countries.
But the assistance from the IDB would depend on proper utilisation of the new opportunities. The IDB would, in that case, be in a position to step up its assistance to Bangladesh from its solidarity fund. Already, IDB has pledged a substantial amount of assistance out of the fund. But making good and timely use of the resources will depend on the efficiency of the executing agencies in Bangladesh.