Deal on $75m IDA loan for flood rehabilitation
Friday, 5 October 2007
FE Report
The government signed Thursday an agreement with the International Development Association (IDA) on credit worth US$ 75 million, which will help finance part of the FY08 budgetary resource gap incurred as a result of the floods, said a WB press release.
It will also allow the government to continue its implementation of the (Development Support Credit) DSC IV-supported macroeconomic and budget framework.
The supplemental financing will contribute to assisting the government in covering immediate needs for relief, livelihood support, and reconstruction by accessing financial assistance necessary to mitigate the impact of the floods.
Additional Secretary Shaheedul Haque of Economic Relations Division (ERD) and World Bank (WB) Acting Country Director Mohamed Alhousseyni Toure signed the agreement on behalf of the government and the WB, respectively at the Economic Relations Division at Agargaon.
The additional financing to DSC IV will be an important source of resources for the government, as it will provide funds at a time when the full impact of the floods on government revenues is unknown, and there is an urgent need for additional government expenditures.
The supplemental financing is quick disbursing, without any condition, and will contribute to timely provision of support to the affected populations. It will also complement the support for medium- and long-term rehabilitation that is under preparation.
The credit from the IDA, the WB's concessionary arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 per cent.
The government signed Thursday an agreement with the International Development Association (IDA) on credit worth US$ 75 million, which will help finance part of the FY08 budgetary resource gap incurred as a result of the floods, said a WB press release.
It will also allow the government to continue its implementation of the (Development Support Credit) DSC IV-supported macroeconomic and budget framework.
The supplemental financing will contribute to assisting the government in covering immediate needs for relief, livelihood support, and reconstruction by accessing financial assistance necessary to mitigate the impact of the floods.
Additional Secretary Shaheedul Haque of Economic Relations Division (ERD) and World Bank (WB) Acting Country Director Mohamed Alhousseyni Toure signed the agreement on behalf of the government and the WB, respectively at the Economic Relations Division at Agargaon.
The additional financing to DSC IV will be an important source of resources for the government, as it will provide funds at a time when the full impact of the floods on government revenues is unknown, and there is an urgent need for additional government expenditures.
The supplemental financing is quick disbursing, without any condition, and will contribute to timely provision of support to the affected populations. It will also complement the support for medium- and long-term rehabilitation that is under preparation.
The credit from the IDA, the WB's concessionary arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 per cent.