Dhaka, Bangladesh (BBN)- The World Bank (WB) has assured to provide $300 million under Financial Sector Support Project (FSSP) aiming to facilitate long-term financing in the country’s productive sectors.
The assurance came at a meeting of six-member delegation, led by visiting WB Vice President for the South Asia Region Annette Dixon, held in the central bank headquarters in Dhaka on Tuesday with Bangladesh Bank (BB) Dr. Atiur Rahman in the chair.
“We expect that all official formalities of the proposed project will be completed by the end of this fiscal year,” a BB senior, familiar with the process, told BBN.
Any manufacturers are allowed to receive low-cost fund under the proposed project, the central banker explained.
“To ease scarcity of long-term lending fund, the BB is now working with the WB for introducing such longer-term lending window for capital investment by manufacturers,” the BB official noted.
The BB is now providing a short-term export development fund (EDF) worth $1.5 billion to facilitate the country’s exporters for boosting their performances.
The EDF loans from the central bank are payable by the banks upon receipt of exports proceeds within 180 days from the date of disbursement, extendable by the BB up to 270 days in case of a longer period for repatriation of export proceeds.
“We’re discussing further collaboration in particular how the BB to provide excess to longer term fiancé,” Ms. Dixon told reporters after the meeting.
The WB vice president also said Bangladesh has strong tradition of innovation in financial sector particularly micro-financing and the action of the central bank hoping to extend the excess to finance for small and medium enterprisers and larger enterprises.
BB Governor Dr. Rahman requested the WB vice president to come back again with new project to see innovative Bangladesh.
On Saturday last, Ms. Dixon arrived in Dhaka to build on the longstanding partnership between Bangladesh and the World Bank Group.
BBN/SSR/AD-24Feb15-11:54 pm (BST)