WB releases US$200m loan to Bangladesh

DHAKA – The World Bank, happy with reforms undertaken by the Bangladeshi authorities, has agreed to release a US$200 million loan to support the country’s development, a senior Bangladeshi official said yesterday.

The concessionary loan is the fourth and final tranche of a US$900 million credit dating from 2003. The World Bank held back the instalment, expected last year, because of delays by the government in implementing financial and other reforms.”Most of the conditions …have now been fulfilled,” Aminul Islam Bhuiyan, secretary of Bangladesh’s Economic Relations Division, told Reuters.”Though satisfied with the country’s macroeconomic stability, the World Bank has still emphasised continuing reforms in the banking sector and taxation administration,” he said, without elaborating.The World Bank had also been pressing Bangladesh to raise fuel prices to bring them closer to international levels and cut subsidies to state-owned Bangladesh Petroleum Corporation, the country’s sole importer and distributor of fuel.Last week the army-backed interim government raised prices by up to 21 per cent for petrol, diesel and paraffin, which officials said had pleased the World Bank and other aid donors.The interim authority has also taken steps to tackle corruption.An election due on Jan.22 was postponed in the wake of countrywide political violence, which also forced the government to impose a state of emergency and ban political activities.Nampa-ReutersThe World Bank held back the instalment, expected last year, because of delays by the government in implementing financial and other reforms.”Most of the conditions …have now been fulfilled,” Aminul Islam Bhuiyan, secretary of Bangladesh’s Economic Relations Division, told Reuters.”Though satisfied with the country’s macroeconomic stability, the World Bank has still emphasised continuing reforms in the banking sector and taxation administration,” he said, without elaborating.The World Bank had also been pressing Bangladesh to raise fuel prices to bring them closer to international levels and cut subsidies to state-owned Bangladesh Petroleum Corporation, the country’s sole importer and distributor of fuel.Last week the army-backed interim government raised prices by up to 21 per cent for petrol, diesel and paraffin, which officials said had pleased the World Bank and other aid donors.The interim authority has also taken steps to tackle corruption.An election due on Jan.22 was postponed in the wake of countrywide political violence, which also forced the government to impose a state of emergency and ban political activities.Nampa-Reuters