ADB approves USD 600 million loan to support Bangladesh

Manila [Philippines], January 12 (ANI): The Asian Development Bank (ADB) has approved a USD 600 million policy-based loan to the Government of Bangladesh, said the Philippines-headquartered regional development bank.

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The purpose of the loan is to support Bangladesh in undertaking structural reforms supporting the mobilisation of domestic resources, efficiency of public investment projects, developing private sector, reforming state-owned enterprises, and promoting transparency and good governance.

"ADB's PBL (policy-based loan) promptly responds to Bangladesh's immediate development financing needs following the political transition," said ADB Regional Lead Economist Aminur Rahman. "ADB's program was developed in close collaboration with the International Monetary Fund, World Bank, and other development partners."

Bangladesh has been struggling with revenue mobilization, as it possesses the lowest tax-to-gross domestic product ratio in the world, ADB said in a statement dated January 11.

ADB believes the loan will help Bangladesh introduce key policy actions.

The loan also aims to facilitate policy and institutional reforms to promote a "whole of government" logistics sector reform to reduce the cost of trade and promote export diversification. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)