IFC to give $1b a year for pvt sector growth

Bangladesh is expected to receive US$ 1.0 billion worth of financial support annually from the International Finance Corporation (IFC) for facilitating its private sector growth, officials said Thursday.
"We have requested the IFC for extending its support to a billion dollar per year from the current $600-$700 million. The Corporation has assured us of considering the proposal," said Arastoo Khan, additional secretary of the Economic Relations Division (ERD).
Led by Finance Minister AMA Muhith, a Bangladesh government delegation met IFC Vice President (Asia-Pacific) Karin Finkelston on the sidelines of the International Monetary Fund-World Bank (WB) spring meeting in Washington during April 11-13 and requested the Corporation in this regard.
This year the IFC has set a target to lend some $650 million in credit to the Bangladesh's private sector companies for boosting their business, Arastoo Khan, who was a government delegation member, told the FE.
The IFC is a dedicated institution of the World Bank Group for funding the private sector in its different member-countries across the globe.
IFC in Bangladesh focuses on sustainable private sector development by providing finance, also providing advisory support including facilitating improvements in doing business and promoting competitiveness of small and medium enterprises.
In fiscal year (FY) 2013, the IFC invested $774 million worth of funds to 12 projects in the private sector in Bangladesh.
The IFC works in areas that are important to Bangladesh economy such as agriculture, infrastructure, financial markets, and energy efficiency.
Arastoo Khan said since Bangladesh's private sector was growing, it needed huge financial support from home and abroad. "So, we have requested the IFC for expanding its financial support to Bangladesh."
He said the Bangladesh delegation also met Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA) Ms Keiko Honda and requested for boosting its activities in Bangladesh.
Mr Khan said if the MIGA, another institution of the WB Group, gives guarantee to any company or firm, it could get loans from any international lenders with low interest rates.
The MIGA gave a guarantee of US$ 240 million worth of loans to the state-owned Ashuganj Power Station Company Limited from the HSBC for setting up a 450-megawatt capacity power plant last year.
Mr Khan said the World Bank in its reform programme has decided that all of its five institutions would work under the "One Bank Policy" aimed at ending poverty and promoting shared prosperity.
The WB has also decided to consider the Third World countries' proposal for expanding their share in the World Bank ownership by reducing that of the developed nations, he informed.