$1 billion loan: ADB vice-president due in Dhaka Tuesday night for discussion

Ashok Lavasa, vice-president of Asian Development Bank (ADB), will arrive in Dhaka on Tuesday night to discuss Bangladesh's requirement of $1 billion in loan assistance for budget implementation, Economic Relations Department (ERD) sources have said, reports UNB. 

Lavasa, in-charge of Private Sector Operations and Public-Private Partnerships, will meet the planning minister and foreign minister during his weeklong visit.

The ADB vice-president will also have discussion with Bangladesh Bank on debt management, government expenditure and other issues.

Earlier, ERD sent a loan proposal of $1 billion to ADB for budget support.

ADB's Dhaka office has informed the Ministry of Finance about Lavasa's visit.

Apart from the loan proposal, the progress of the ongoing projects in the country with ADB assistance will also feature in the discussion.

The ADB vice-president will hold several meetings with private entrepreneurs and people at the policy-making level of the government. He will visit garment factories and a private food processing plant which was funded by ADB.

Earlier, IMF and Bangladesh reached a preliminary agreement on $4.5 billion loan. If finalized, the first instalment of $447 million will be available in February 2023. Besides, $250 million will be available from the World Bank as a budget support loan. Recently, the delegations of these two organizations gave assurance in this regard during their visits to Dhaka.

When asked, Planning Minister MA Mannan told UNB, “ADB has given us the major portion of loans compared to other donor agencies. I have asked them for a loan as budget support and the process is going on.”

“Before giving loans, ADB will check the country's economic indicators. It will also give some conditions. Their response to this loan is positive so far,” the minister said.

A senior official of the ERD, involved in ADB's loan process, said that the organization has never provided loan assistance as budget support. But since Covid-19 outbreak, ADB has started providing loan assistance in this sector.