MD. Ahsan Mahmud
The Asian Development Bank (ADB) and the World Bank (WB) have jointly approved loans exceeding $1.5 billion to support Bangladesh’s ongoing reforms in the banking sector and its climate resilience efforts, among other development initiatives, according to a media report published Friday.
As reported by The Daily Star newspaper, the ADB has approved a total loan package of $900 million. Of this amount, $500 million will be allocated toward stabilizing and reforming Bangladesh’s banking sector, while the remaining $400 million will be directed toward advancing climate-resilient and inclusive development programs.
The ADB stated on Thursday that the $500 million policy-based loan is intended to bolster governance, enhance asset quality, and improve overall stability within Bangladesh’s financial system. These reforms are considered critical to ensuring a robust and transparent banking environment in the country.
In addition to the financial sector support, the ADB has earmarked $400 million for the second phase of its Climate-Resilient Inclusive Development Programme (CRIDP). This initiative aims to strengthen Bangladesh’s capacity to adapt to the effects of climate change, reduce greenhouse gas emissions, and promote inclusive and sustainable economic growth across vulnerable communities.
Meanwhile, the World Bank on Thursday approved $640 million in funding for two key infrastructure and environmental projects. One project will focus on enhancing Bangladesh’s gas supply, while the other aims to improve air quality, particularly in urban centers where pollution poses a significant health and environmental threat.
The combined financial support from the ADB and World Bank, totaling over $1.5 billion, is expected to provide critical relief to Bangladesh’s strained foreign currency reserves. It also signals continued international confidence in the country’s reform agenda and commitment to sustainable development.
