Printed on Thu Jun 30 2022 4:51:54 PM

World Bank loan to support Bangladesh Economic Growth

National Desk
World Bank Bangladesh
Bangladesh and the World Bank have signed a $250 million funding consent to support the country’s reform efforts to sustain development following the pandemic and to improve versatility to future shocks, including environmental change.

The Bangladesh First Recovery and Resilience Development Policy Credit — the first in a series of two credits — will assist Bangladesh to build a stronger fiscal and financial sector to sustain growth, the World Bank said in a release.

The credit is from the World Bank’s International Development Association (IDA), which gives concessional financing and has a 30-year term, including a five-year grace period.

It will assist streamline the bank recovery framework with all scheduled banks to update recovery plans annually.

The programme upholds the legislative framework on payments, which will contribute to a more efficient financial system.

The programme supports adjustments to the interest rates of public reserve funds instruments such as the National Savings Certificate.

Mercy Tembon, WB Country Director for Bangladesh and Bhutan, said that Bangladesh has made a strong monetary recuperation from the pandemic.

“This program will additionally support the government’s policies to make the economy more resilient and competitive as Bangladesh strives to become an upper-middle-income country by 2031.”

The cancellation of 8,451 MW of investments in coal-fired electricity generation projects will accelerate the country’s transition to decarbonisation and a green economy.

The revised National Building Code will assist the country to reduce greenhouse gas emissions by improving energy efficiency in buildings.

The programme will uphold the National Tariff Policy to modernise taxes and foster a globally competitive export industry. It will help to better leverage digital technologies and enable non-resident firms to submit VAT returns, according to the WB.

The expanded inclusion of the electronic government (e-GP) system will improve the efficiency of public procurement.

It will likewise uphold the inclusion, speed, and efficiency of social protection programmes to help the government rapidly respond to extreme climate events such as floods and cyclones.

By using the government-to-person payment platform for cash transfers, the government can identify new and existing beneficiaries for emergency assistance while also capturing gender-disaggregated payment data.

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