Cenbank receives $2.5b loan proposal from World Bank, ADB
The proposal was presented to Bangladesh Bank Governor Ahsan H Mansur, and other senior officials of the bank today during a meeting with representatives of the two financial institutions
The Bangladesh Bank has received loan proposals totalling $2.5 billion from the World Bank and the Asian Development Bank (ADB) to support structural reforms, policy implementation, and investment loans.
The proposal was presented to Bangladesh Bank Governor Ahsan H Mansur, and other senior officials of the bank today during a meeting with representatives of the two financial institutions, central bank's spokesperson and Executive Director Husne Ara Shikha told The Business Standard.
Husne Ara said the World Bank has proposed a $1 billion loan package, including a $750 million policy-based loan that requires the implementation of specific policies by the central bank.
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Additionally, a $250 million investment loan is currently under consideration, she added.
A top official from the Bangladesh Bank, who attended the meeting, said while the World Bank has yet to provide detailed guidance on the necessary policy changes, it has pointed to areas such as an asset quality review, audit procedures, and work related to the bank reform task force.
Regarding the ADB's proposal, the central bank spokesperson said the ADB has proposed a policy-based loan amounting $1.5 billion in three phases with over $200 million in investment loans. The offer also stated that a disbursement of $500 million of the total amount will be received within 2025.
Another senior central bank official said the World Bank will provide policy support in the areas where the government is undertaking reform activities.
The official further said the government had previously discussed seeking assistance from organisations such as the ADB, the Japan International Cooperation Agency, and the USAID to support various reform initiatives, and the World Bank and the ADB have presented their loan proposals in line with this.
Additionally, both the World Bank and the ADB were informed about Bangladesh's macroeconomic situation, the central bank's reform plans, and its roadmap during the meeting, the senior official added.
Additionally, a US delegation led by Brent Nieman, the deputy under-secretary and assistant secretary of the US Treasury Department, met with the central bank governor. They were also briefed on the country's macroeconomic situation, Husne Ara added.
In response to a question, the spokesperson confirmed that the US treasury team did not mention any loan amount to the central bank.
