The World Bank (WB) is providing Bangladesh with $1000 million to overhaul the country's banks and economic sector, as well as to strengthen its central bank.

However, to get this loan, Bangladesh must first meet four conditions.

A World Bank delegation placed their four conditions during a meeting with Bangladesh Bank on Sunday (September 16).

The conditions are - Creation of asset management company structures to collect defaulted loans from banks and financial institutions and formulating policies to determine who will be the real beneficiary of a loan, the scope of forensic audit of banks and financial institutions should be determined, a separate department should be established in Bangladesh Bank for the implementation of regulations (enforcement).

In this regard, Bangladesh Bank Executive Director and Spokesperson Husne Ara Shikha said that Bangladesh has to fulfill certain conditions to get these loans.

“The four conditions include the formation of debt management companies in the private sector, determination of new definitions of defaulted loans as per international standards, and the scope of forensic audit under the newly formed task force,” she said. 

However, 50 percent of the conditions have already been reformed, she added.

Of this $1 billion loan from the World Bank, $750 million will be spent on policy reforms.

The remaining 25 million dollars will be available for use as investment loans and guarantee facilities.

BDST: 1603 HRS, SEP 16, 2024
MSK/SMS