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Bangladesh has secured commitments of $2.7 billion in financial aid from the World Bank, Asian Development Bank (ADB), and the United States. Of this, $2.5 billion will be allocated for reforms in the banking and financial sectors, with ADB providing $1.5 billion and the World Bank the remaining $1 billion. Meanwhile, the US will contribute $200 million to support health, governance, and economic opportunities.

These pledges come less than two months after the interim government, led by Dr. Yunus, assumed office. All three announcements were made yesterday (Sunday, September 15).

The Bangladesh government requested $1 billion in budget support from the World Bank on September 12, with the Economic Relations Division (ERD) seeking $500 million in two installments.

Bangladesh Bank Executive Director and spokesperson Husne Ara Shikha told the media yesterday (Sunday, September 15), “The World Bank will provide $1 billion in loan assistance to Bangladesh. Of this, $750 million will be policy-based loans, and $250 million will be investment loans. The World Bank’s board is expected to approve the loan by December, but Bangladesh must meet three conditions to secure the funds.”

According to the central bank, Bangladesh must establish a private-sector asset management company, redefine the classification of non-performing loans (NPLs) according to international standards, and present the task force’s audit firm reports to the World Bank.

Husne Ara Shikha noted that the announcement of loan assistance came after a separate meeting between the World Bank, ADB, and Bangladesh Bank. She said, “ADB will disburse the first $500 million of the $1.5 billion, followed by two more installments of $500 million each.”

Yesterday (Sunday, September 15), ADB representatives met with Economic Adviser Salehuddin Ahmed at the Secretariat. After the meeting, Adviser Ahmed told reporters, “ADB is one of Bangladesh’s key financial partners.”

Meanwhile, the US has pledged $200 million in development cooperation. A contract was signed between the interim government and the United States Agency for International Development (USAID) yesterday. The agreement is aligned with the priorities of the interim government.

This aid is provided under a 2021 agreement between the US and Bangladesh, with the contract signed as part of the sixth amendment to the Development Objective Grant Agreement (DOAG). The agreement is valid until 2026.

AKM Shahabuddin, Additional Secretary of the Economic Relations Division (ERD), signed the contract on behalf of Bangladesh, while Reed J. Aschliman signed for USAID. Finance and Commerce Adviser Salehuddin Ahmed was present at the signing event.

Commenting on the deal, Adviser Ahmed said, “An additional $200 million has been added to the previous agreement. This amount is in addition to the previous funds, meaning they will provide more.”