AIIB to provide Bangladesh with $700m budget support
The Asian Infrastructure Investment Bank (AIIB) will provide Bangladesh with 700 million US dollar in budget support in the current fiscal year.
Officials from Bangladesh's Economic Relations Division (ERD) revealed that the country requested this support during a meeting with AIIB's president on the sidelines of the bank's annual conference, held in Samarkand, Uzbekistan, from September 23-26. The AIIB president provided an initial positive response to the request.
Of the total amount, $300 million will be tied to reform initiatives focused on climate change and environmental issues, while $400 million will be allocated for emergency assistance in managing natural disasters.
ERD sources highlighted that, due to the current economic conditions, Bangladesh has reached out to several development partners for budgetary support. This includes requests for $1 billion each from the World Bank and the Asian Development Bank (ADB) to help cover outstanding payments for oil and gas imports.
In addition, Bangladesh is expecting $400 million from the ADB under the LDC Graduation Support Programme within the same fiscal period.
The ERD has also sought $500 million from the ADB for banking sector reforms, with the ADB already committing $1.5 billion in loans to be disbursed in three stages for these reforms.
Additionally, Bangladesh has approached Japan with a request for $1 billion in budgetary support for the current fiscal year.
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