Govt to seek $750m credit from ADB to weather recession impact
Wednesday, 22 July 2009
FHM Humayan Kabir
The government will seek US$750 million worth of credit from the Asian Development Bank (ADB) to weather the impact of the global economic recession and minimise the budget deficit, officials said Monday.
Finance ministry officials said the government will urge ADB president Haruhiko Kuroda for offering the loan during his two-day visit here on July 23-24.
"Mr. Kuroda will meet the prime minister and the finance minister Thursday when ADB support will be sought," a senior finance ministry official told the FE.
The adverse impact of the recession on local economy and declining trend of foreign assistance from bilateral donors have prompted the government to appeal for the budgetary support credit from ADB, he added.
The government has received only $35 million worth of fund in 11 months up to May of the last fiscal 2008-09 from Japan, the major bilateral donor. Besides, the next loan package worth nearly $425 million from Tokyo has also been delayed.
"The current financial year will be very crucial for our economy. So, the government wants to make its coffer beefy to face any future financial crisis," the official said requesting anonymity.
The government will request Mr. Kuroda to disburse $750 million budgetary support credit, costliest among the ADB loans, soon to Bangladesh aiming at facing the global financial crisis, he said.
Bangladesh has already appealed for $500 million worth of aid from the ADB's Counter Cyclical Support Facility fund, created recently to help the recession hit nations and another $240 million budgetary support credit.
The government will seek US$750 million worth of credit from the Asian Development Bank (ADB) to weather the impact of the global economic recession and minimise the budget deficit, officials said Monday.
Finance ministry officials said the government will urge ADB president Haruhiko Kuroda for offering the loan during his two-day visit here on July 23-24.
"Mr. Kuroda will meet the prime minister and the finance minister Thursday when ADB support will be sought," a senior finance ministry official told the FE.
The adverse impact of the recession on local economy and declining trend of foreign assistance from bilateral donors have prompted the government to appeal for the budgetary support credit from ADB, he added.
The government has received only $35 million worth of fund in 11 months up to May of the last fiscal 2008-09 from Japan, the major bilateral donor. Besides, the next loan package worth nearly $425 million from Tokyo has also been delayed.
"The current financial year will be very crucial for our economy. So, the government wants to make its coffer beefy to face any future financial crisis," the official said requesting anonymity.
The government will request Mr. Kuroda to disburse $750 million budgetary support credit, costliest among the ADB loans, soon to Bangladesh aiming at facing the global financial crisis, he said.
Bangladesh has already appealed for $500 million worth of aid from the ADB's Counter Cyclical Support Facility fund, created recently to help the recession hit nations and another $240 million budgetary support credit.