Govt eyes $2.5b from World Bank
Bangladesh may seek more than $2.5 billion from World Bank in budgetary support, project financing and aid as it has to implement a significant part of the country's gigantic stimulus package to regenerate the economy.
Its main target is always to secure $500 million in budget support in today's fiscal year.
Of the sum, $250 million will be sought in the form of development support credit and another $250 million from the development lender's fund for the poorest countries to combat the impacts of the coronavirus pandemic.
The Washington-based lender has indicated that it would provide $1.87 billion in today's fiscal year from its International Development Association (IDA), which lends to the poor countries.
It has already approved loans worth $402 million in the FY21, said the official of the WB's Dhaka office yesterday.
The government can be pursuing $400 million from the WB's scale-up facility, which provides loans at non-concessional terms. The lender indicated that it could give $200 million in FY21 beneath the facility, said the official of the finance ministry.
Combined, the federal government would want $2.52 billion from its long-time development partner.
The WB approved $2.27 billion in the just-concluded fiscal year. Of the sum, $1.7 billion came after March, extending much-needed support to the united states reeling from the pandemic.
The financing issue will be discussed during Finance Minister AHM Mustafa Kamal's gross annual meetings with senior WB officials, now to be held virtually, starting October 12, said the finance ministry official.
The WB has decided to deploy up to $160 billion in financial support over 15 months to greatly help a lot more than 100 countries protect the indegent and vulnerable, support businesses, and bolster monetary recovery.
This includes $50 billion of new IDA resources through grants and highly concessional loans.
Bangladesh would want more funds in fiscal 2020-21 since this will be the period when a majority of the Tk 113,117 crore stimulus funds formed to regenerate the economy would be implemented.
Rising expenditure and slower revenue generation are prompting the federal government to get outside help.
Revenue collection rebounded in August after remaining downbeat for four months since April, thanks to recovery running a business and monetary activities that buoyed overall receipts.
In August, taxmen collected Tk 15,406 crore, a rise by 7.85 per cent from the same month this past year.
Despite August's recovery, overall collection was almost the same when you compare the July-August period year-on-year, provisional data from the National Board of Revenue showed.
So, aside from availing regular project financing from the WB, the federal government would emphasise securing budget support, the finance ministry official said.
The federal government has undertaken a programme worth $550 million to procure and distribute coronavirus vaccines.
It is currently in negotiation with the WB and Asian Infrastructure Investment Bank for a loan of $400 million for the programme. All of those other amount would be contributed by the federal government.
On September 29, World Bank President David Malpass said he was seeking board approval for a $12 billion coronavirus vaccine financing intend to help poor and developing countries secure enough stocks after the solution was obtainable in the coming months.
He said the board was likely to consider the program in early October.
The initiative is part of a $160 billion coronavirus aid finance pledged by the multilateral lender.
It aims at helping countries procure and distribute vaccines early to healthcare and other essential staff and expand global production.
