WB to provide $2 billion in loans to Bangladesh

The World Bank (WB) has pledged over $2 billion in new loan assistance this fiscal year to support essential reforms, flood response, improvements in air quality, and health initiatives.

WB's Country Director Abdoulaye Seck announced this commitment during a meeting with Principal Adviser Professor Muhammad Yunus at the Rashtriya Guest House Yamuna in Dhaka on Tuesday (September 17).

He said, "the World Bank is dedicated to boosting lending to Bangladesh this fiscal year to support the Interim Government's reform agenda."

"We aim to assist you as swiftly and extensively as possible," he added.

In addition to its total $2 billion commitment, the World Bank has announced a $1 billion loan package for Bangladesh. This includes $750 million in policy loans for budget support and $250 million for investment loans. The policy-based lending targets five major reform areas, with a decision on the $750 million expected at the World Bank Board of Directors' meeting in December. Negotiations are still ongoing for the terms of the remaining $250 million.

Seck also highlighted the World Bank's readiness to mobilize up to $2 billion in new financing this fiscal year to support Bangladesh's urgent needs and development objectives.