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Tag: financing

  • World Bank approves $1.25 bn financing for Bangladesh

    World Bank approves $1.25 bn financing for Bangladesh

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    Dhaka: The World Bank has discussed a new Country Partnership Framework (CPF) for Bangladesh, spanning from 2023 to 2027, and approved $1.25 billion financing in three new projects, the lender said.

    Of the projects, the bank said on Friday that it will provide $500 million for a project termed Program on Agricultural and Rural Transformation for Nutrition, Entrepreneurship, and Resilience (PARTNER).

    Another $500 million will come as First Green and Climate Resilient Development Credit which will help the country’s transition to green and climate-resilient development, the lender said in a statement.

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    It approved $250 million for a project on microenterprise to help transform the micro-enterprise sector into a more dynamic, less-polluting, resource-efficient, and climate-resilient growth sector, Xinhua news agency reported.

    “This Country Partnership Framework builds on five decades of strong partnership between the World Bank Group and Bangladesh,” said Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan.

    “As Bangladesh aims to be more prosperous, it will need stronger institutions and policies to serve the needs of an upper-middle-income country. This CPF will support the government’s reform programmes to deliver jobs and support inclusion and resilience,” Seck added.

    “Bangladesh has been one of the world’s outstanding development growth stories. Additional reforms to spur the development of a more diversified and competitive private sector will grow exports and create quality jobs,” said Martin Holtmann, country manager of International Finance Corporation for Bangladesh, Nepal and Bhutan.

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    ( With inputs from www.siasat.com )

  • After India, China gives financing assurances to Sri Lanka for IMF bailout package

    After India, China gives financing assurances to Sri Lanka for IMF bailout package

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    Colombo: China has given debt-ridden Sri Lanka the financing assurances required by the IMF to unlock a USD 2.9 billion bailout package for the country, days after India strongly backed the island nation’s efforts to secure the loan from the global lender to recover from its worst-ever economic crisis.

    The Sunday Times newspaper reported that China’s Exim Bank delivered a letter on Saturday granting Sri Lanka a two-year moratorium on repayment and agreeing with the International Monetary Fund’s extended fund facility (EFF).

    The report was confirmed by Sri Lankan officials who did not want to be named.

    The Chinese response came close on the heels of India stepping in first to issue the necessary assurances last week.

    India’s ministry of finance last week issued a letter to the IMF to confirm its support to Sri Lanka on the issue of debt restructuring, ahead of the visit by the external affairs minister S Jaishankar to Colombo which concluded on Friday.

    Jaishankar during his visit also announced that India has given the required assurances to Sri Lanka for the bailout package.

    Sri Lankan officials said that China had agreed to a short-term suspension of what Sri Lanka owed and expects Sri Lankan creditors to get together to work out the medium and long-term commitments.

    The IMF in September last year approved Sri Lanka a 2.9 billion dollar bailout package over 4 years pending Sri Lanka’s ability to restructure its debt with creditors — both bilateral and sovereign bond holders.

    By the end of June 2022, Sri Lanka owed nearly USD 40 billion to bilateral, multilateral and commercial loans, according to the figures released by the Treasury.

    Chinese loans amounted to 20 per cent of the total debt owed and 43 per cent of the bilateral loans.

    Sri Lanka in April declared its first-ever debt default in its history as the economic crisis triggered by forex shortages sparked public protests.

    Months-long street protests led to the ouster of the then president Gotabaya Rajapaksa in mid-July. Rajapaksa had started the IMF negotiations after rejecting to tap the global lender for support.

    With assurances from creditors, the 2.9 billion dollar facility could get the IMF board approval in March, officials said.

    Sri Lanka has introduced painful economic measures such as tax hikes and utility rate hikes. Trade unions and opposition groups have organised protests against such measures.

    The IMF bailout has been put on a halt as Sri Lanka pursues talks with creditors to meet the global lender’s condition for the facility to help it get through its worst economic crisis since independence in 1948. Earlier, Sri Lanka completed its debt restructuring talks with Japan.

    The IMF facility would enable the island nation to obtain bridging finance from markets and other lending institutions such as the ADB and the World Bank.

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    ( With inputs from www.siasat.com )