B Mirror Report: The World Bank will provide Bangladesh with a $450 million loan to strengthen financial sector safeguards, enhance regulatory oversight and support banking sector reforms.
The loan agreement for the Financial Sector Support Project-2 was signed between the Bangladesh government and the World Bank’s International Development Association (IDA) at the Economic Relations Division (ERD) in Dhaka on Friday.
ERD Secretary Md Shahriar Kader Siddiky signed the agreement on behalf of Bangladesh, while Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, signed on behalf of the lender.
Under the agreement, Bangladesh will receive 328 million Special Drawing Rights (SDR), equivalent to approximately $450 million. The five-year project will be implemented from July 1, 2026, to June 30, 2031, with Bangladesh Bank serving as the implementing agency.
The project aims to strengthen safeguards in the financial sector, improve supervision of financial institutions and support the restructuring of the banking sector.
According to the loan terms, the disbursed amount will carry an annual interest rate of 1.5 per cent, while an annual commitment fee of up to 0.50 per cent may apply to the undisbursed amount.
Bangladesh will have 25 years to repay the loan, including a five-year grace period.
The World Bank is Bangladesh’s largest multilateral development partner and has been financing various initiatives in economic and social development, institutional reforms, infrastructure and the energy sector.
