Dhaka, Sep 17 (V7N)-  Financial adviser Dr. Salehuddin Ahmed has confirmed that Bangladesh has requested loan assistance from the World Bank to address liquidity challenges in the banking sector. In addition, the country has sought financial support for sector reforms and the national budget.

Following a meeting with World Bank South Asia Regional Director Matthew A. Virgins on Tuesday, Dr. Ahmed informed reporters that the discussions were positive. The World Bank is expected to extend support for economic reforms and budgetary needs. He emphasized that the discussions focused on ensuring that the terms of the assistance are simple and easily implementable.

The World Bank has reportedly discussed providing $1 billion in loan assistance to Bangladesh, including $750 million as a policy-based loan and $250 million for investment and guarantee facilities. This assistance, aimed at financial sector reforms, is expected to be approved by the World Bank board by December 2024.

However, Bangladesh must meet three key conditions to secure the loan. These include establishing a private-sector asset management company, redefining defaulted loans according to international standards, and submitting an audit report from the task force formed to address these issues to the World Bank.

The loan is seen as crucial for improving liquidity in the banking sector and supporting broader financial reforms in the country.

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