World Bank pledges $3.5b to support interim govt’s reform initiatives

World Bank President Ajay Banga said the bank would provide $3.5 billion to Bangladesh to support the interim government's reform initiatives.

The World Bank president announced the support during a meeting with Bangladesh Chief Adviser Professor Muhammad Yunus on the sideline of the UN General Assembly at the UN Headquarters in New York yesterday (NY Time).

Banga, a long-time friend of Yunus, said at least $2 billion would be fresh lending and another $1.5 billion would be repurposed from the existing programmes.

He said the World Bank would support reforms in digitisation, liquidity, energy and power and transport.

During the meeting, Yunus sought the World Bank support for the wide-range reforms the interim government had undertaken.

He asked the World Bank to be creative about its lending programme.

"It is a big opportunity to rebuild the country," he said.

The WB president discussed the cooperation in South Asia's energy sector and how hydro energy produced in Nepal and Bhutan could be shared by neighbours such as India and Bangladesh.

Energy and Power Adviser Fouzul Kabir Khan was also present at the meeting.