Economy
World Bank lends $45 crore to strengthen Bangladesh’s financial sector safeguards
Translated by Desk Report
The World Bank is lending Bangladesh $45 crore to strengthen safeguards and supervision in the country’s financial sector. Bangladesh Bank will implement the Financial Sector Support Project-2 with the funding.
The Bangladesh government and the World Bank’s International Development Association (IDA) signed a loan agreement to this end. The agreement was signed on Friday at the Economic Relations Division (ERD) of the finance ministry, according to a press release.
ERD Secretary Md Shahriar Kader Siddiky signed for Bangladesh, while Jean Pesme, the World Bank’s division director for Bangladesh and Bhutan, signed for the lender.
Under the agreement, Bangladesh will receive 32 crore 80 lakh Special Drawing Rights (SDR), equivalent to approximately $45 crore. The project will run from July 1, 2026, to June 30, 2031.
The project’s main objectives are to strengthen the financial sector’s safeguards framework, improve monitoring and supervisory capacity over financial institutions, and support banking sector restructuring.
Under the loan terms, withdrawn funds will carry an annual interest rate of 1.5 percent. A commitment fee of up to 0.50 percent may apply to undisbursed funds. The loan has a repayment period of 25 years, including a five-year grace period.
The World Bank is one of Bangladesh’s leading multilateral development partners. It has financed the country’s economic and social development, institutional reforms, infrastructure, energy and other sectors.
