Bangladesh: $450 Million World Bank Loan Signed to Strengthen Financial Sector and Restructure Banks
Bangladesh and the International Development Association (IDA) of the World Bank signed a $450 million agreement on October 30 to implement the Financial Sector Support Project II, The Business Standard reported on October 31, citing a press release by Bangladesh's Economic Relations Division.
The project's objectives are to strengthen the financial sector safety net and supervisory capacity and to support banking sector restructuring, the press release said. Md Shahriar Kader Siddiky, secretary of the Economic Relations Division, and Jean Pesme, the World Bank's division director for Bangladesh and Bhutan, signed the financing agreements for their respective sides.
The project will be implemented from July 1, 2026 to June 30, 2031 by the Bangladesh Bank, the central bank, under the Financial Institutions Division.
The loan carries an interest rate of 1.5 percent per annum on the withdrawn balance and a maximum commitment fee of up to 0.50 percent per annum on the unwithdrawn balance, though the World Bank has been waiving the commitment fee for Bangladesh for many years including the current fiscal year; the maturity period is 25 years, including a five-year grace period.
Source: GSM · USA (original Chinese edition)
Photo: 照片：孟加拉国首都达卡市景，ComradePS2 摄，Wikimedia Commons，CC0 授权 / Photo: Dhaka cityscape, Bangladesh, by ComradePS2, Wikimedia Commons, CC0
