AIIB likely to raise financing to Bangladesh

The Asian Infrastructure Investment Bank (AIIB)

is likely to raise its financing to Bangladesh in the coming years while the
country is likely to be the first nation to receive climate finance from the
multilateral development bank.

“We don’t have any limits on our lending to Bangladesh right now. We can
definitely take it up substantially and that was also my request to the
Finance Minister,” said AIIB acting vice-president Rajat Misra while replying
to a query from a reporter after he made a courtesy call on Finance Minister
Abul Hassan Mahmood Ali at his secretariat office here today.

Noting that Bangladesh is the fifth largest borrower of AIIB with approvals
around US$3.5 billion, Misra said: “We’re primarily an infrastructure finance
bank. So, we also want to be a partner of Bangladesh’s development in
infrastructure. Because, the country is developing in infrastructure in a
rapid pace with new metro line commissioned. So, we definitely would like to
do more.”

Secondly, he said they are also working on some critical areas like climate
finance. “So, we’re putting together a policy on climate finance. And again
with Bangladesh, we’re discussing an advanced stage on one project and that
would be the first project to be approved by the AIIB on climate finance. So,
we’re having a very valuable partnership with Bangladesh in both way.”

Replying to another question, the AIIB acting vice-president said, “We’re
putting in place on our policy and also working on the projects
simultaneously. We hope in the next three months, there will be something…
.”

Finance Minister Mahmood Ali said the government is very much happy that the
AIIB have the investments and lending policy that suits the requirements of
Bangladesh. “They (AIIB) are also happy and they’re very close to us…We’re
happy that they are in a position to help us,” he added.

Replying to a question, Ali said the AIIB has assured the government that
whatever project would be placed before them, they would find a way out to
support it.

Finance Division Secretary Dr M Khairuzzaman Mozumder said the AIIB wants to
be involved more in the infrastructure sector of Bangladesh.

Besides, he informed that the government also sought support from the AIIB in
the budget support programme.

“The AIIB vice-president has informed us that support will come in climate
finance and Bangladesh would be the first country to receive climate finance
from the AIIB.” the Finance Secretary added. (BSS)