WB pledges US$ 2b of new support to Bangladesh

The World Bank is committed to increasing lending to Bangladesh in this fiscal year to help the reform agenda of the Interim Government, its Country Director Abdoulaye Seck said today.

Abdoulaye Seck informed that the World Bank can mobilise about $2 billion new financing in this fiscal year to support critical reforms, flood response, better air quality and health.

Seck spoke about the new assistance when he called on Chief Adviser Professor Dr Muhammad Yunus at the State Guest House Jamuna in Dhaka.

“We would like to support you as fast as possible and as much as possible,” Seck said, adding that the bank would support the critical financial needs of the country.

In addition to the new commitments, he said, the multilateral lender would repurpose about an extra US$ one billion from its existing programmes in consultation with the government in response to the calls for support by the Chief Adviser to all development partners of Bangladesh.

Seck said the extra lending would raise the amount of soft loans and grants the World Bank would be giving to Bangladesh this fiscal year to about US$ 3 billion once the funds from the existing projects are repurposed.

The World Bank country chief said the completion of the reforms would be “critically important” for Bangladesh and its young people, including the two million people who are joining the job market every year.

During the meeting, Chief Adviser Prof Yunus told the World Bank country head that the bank must have flexibility to fund Bangladesh’s reforms and help restart a new journey after 15 years of “extreme misgovernance.”

“Out of these ashes, we have to build new structures. We need a big push, and we have to focus on the dreams of the students,” he said.

“I will suggest, help us. Be a part of our team,” said the Chief Adviser.

Prof Yunus asked the World Bank to lend its technical support to recover billions of dollars of stolen assets siphoned off from Bangladesh by corrupt individuals during Sheikh Hasina’s 15-year-long dictatorship.

“You have the tech to bring back stolen assets,” he said, adding Bangladesh would also need the bank’s expertise to build “a zero-corruption Bangladesh”.

The World Bank country chief agreed to help Bangladesh bring back the stolen money. “We are happy to help you,” Seck said.

He said the global lender would also like to help Bangladesh with data transparency, data integrity, digitalisation of tax collection, and financial sector reforms.

Prof Yunus said Bangladesh cannot afford to lose this once in a lifetime opportunity to fix its institutions and undertake major reforms.

“Once we lose it, it will never come back,” he said.

Seck offered condolences for the martyrs of the July-August student-led uprising.

The WB country director said he was impressed by the graffiti and murals painted by young people on Dhaka’s walls. “In 30 years of my career, I’ve never seen it anywhere,” he said. “We need to empower them,” Seck said. (BSS)