The government of Bangladesh signed a USD 250 million financing agreement with the World Bank on Monday to help build economic resilience and sustain economic growth following the Covid 19 pandemic. The Bangladesh First Recovery and Resilience Development Policy credit is the first in a series of two credits provided by the World Bank. It will help Bangladesh build a stronger fiscal and financial sector to sustain growth. It will help the country streamline the bank recovery framework with all scheduled banks to update recovery plans annually, said the press release issued by the World Bank on Tuesday.
Hailing Bangladesh for making a robust recovery from the Covid 19 pandemic, World Bank Country Director for Bangladesh and Bhutan Mercy Tembon said that the program will help further support the government’s policies to make the economy more resilient and competitive as Bangladesh strives to become an upper-middle-income country by 2031.
The World Bank said that cancellation of 8,451 MW of investments in coal-fired electricity generation projects will accelerate the country’s transition to decarbonization and a green economy. The revised National Building Code will help the country reduce greenhouse gas emissions by improving energy efficiency in buildings.
The program will support the National Tariff Policy to modernize taxes and foster a globally competitive export industry. It will also support the coverage, speed, and efficiency of social protection programs to help the government rapidly respond to extreme climate events such as floods and cyclones.
The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing, and has a 30-year term, including a five-year grace period. Bangladesh currently has the largest ongoing IDA program totaling over USD14.5 billion.
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