Dhaka, June 2, 2007: Bangladesh will receive a US$200 million interest-free policy-based credit to bolster reform efforts of the government in the areas of macroeconomic stability, trade liberalization, better functioning of financial and power sectors. This budgetary support from the World Bank will also be used to undertake reforms in core governance functions such as public financial management, the Anti-Corruption Commission, and tax administration.
A signing ceremony to this effect was held this morning at NEC Auditorium of the Planning Commission at Agargaon. M. Aminul Islam Bhuiyan, Secretary, Economic Relations Division, and Xian Zhu, World Bank Country Director, signed on behalf of the government and the World Bank, respectively.
Mirza Azizul Islam, Finance and Planning Advisor, and Praful C. Patel, the visiting Vice President, South Asia Region, World Bank, were present.
With this, the World Bank has now provided US$1.1 billion in policy-based credits to Bangladesh since 2003, including a US$200 million credit in support of education sector reforms. Another US$100 million development support credit for education sector reforms is envisaged in coming months.
Appreciating the Bank’s role in speeding up the release of the Development Support Credit IV, Mirza Azizul Islam said: “This will strengthen the government’s reforms agenda and will brighten prospects for stronger economic growth, improved governance, and faster poverty reduction in Bangladesh.”
Commending the government’s commitment for according the highest priority to broad-based governance reforms, Patel said: “Over the longer term, these reforms are expected to improve public service delivery, reduce systemic corruption, and strengthen the business environment.”
Highlighting the apparent economic and social benefits associated with the reform program supported by the DSC series, Zhu hoped that Bangladesh would continue to implement significant reforms producing results in the form of much-improved development outcomes.
The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period; and it carries a service charge of 0.75 percent.
Contacts:
S.M.Rezwan-ul-Alam (880-2) 8159001 Ext. 4242
salam3@worldbank.org
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