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Sunday, 1st November 2026
Bangladesh Signs $450 Million Loan Agreement with World Bank to Strengthen Financial Sector
31 October 2026 23:10 PM
NEWS DESK
Bangladesh has signed a $450 million financing agreement with the World Bank to strengthen the country's financial safety net, enhance regulatory oversight, and support the restructuring of the banking sector.
The financing agreement was signed on Friday between the Government of Bangladesh and the International Development Association (IDA), the World Bank's concessional lending arm, under a project titled “Financial Sector Support Project-2.”
On behalf of Bangladesh, Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky signed the agreement, while Jean Pesme, World Bank Country Director for Bangladesh and Bhutan, signed on behalf of the institution.
Under the agreement, Bangladesh will receive 328 million Special Drawing Rights (SDR), equivalent to approximately $450 million.
The project will run from July 1, 2026, to June 30, 2031.
The Bangladesh Bank will implement the project under the supervision of the Financial Institutions Division (FID) of the Ministry of Finance.
The project's primary objectives are to strengthen the country's financial safety net, enhance the supervisory capacity of financial sector regulatory authorities, and support reforms and restructuring in the banking sector.
According to the loan agreement, Bangladesh will pay annual interest of 1.5 percent on the outstanding amount of the disbursed loan. In addition, a commitment fee of up to 0.50 percent per year will apply to the undisbursed portion of the financing.
An ERD press release stated that the World Bank has waived commitment fees for Bangladesh for an extended period, including the current fiscal year.
The ERD noted that the World Bank is Bangladesh's largest multilateral development partner. Its financing has played an important role in the country's economic and social development, institutional reforms, infrastructure expansion, and energy sector advancement.
The latest financing agreement reflects the ongoing partnership between Bangladesh and the World Bank to strengthen the country's financial system and institutional capacity.
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