Kamal marshalling development partners to help with COVID-19 wreckage

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Bangladesh has considered multilateral lenders in earnest to pull the country out of your wreckage of COVID-19, which includes left the country's tremendous growth momentum of modern times coming crashing down.

Finance Minister AHM Mustafa Kamal is leading the country's efforts to mobilise the funds. He got right down to work in the first week of April, writing to all or any the multilateral development and bilateral partners seeking whatever support they can extend.

On Thursday, he held a meeting with Hartwig Schafer, vice president for South Asia of the World Bank, over video-conferencing, on the sidelines of the virtual World Bank-International Monetary Fund (IMF) Spring Meetings. The three-day meeting ended on Saturday.

Kamal sought budget support from the Washington-based multilateral lender.

The WB has recently allocated $100 million to Bangladesh for health services and is defined to provide another $250 million by June this season.

The government had been in foretells get the $250 million by September. Now, it has requested to make the funds available by June.

Bangladesh in addition has requested the WB to give its consent to three projects involving a complete of $1.07 billion.

The WB has asked Bangladesh to send the set of the projects by the first week of May following approval from the Executive Committee of the National Economic Council (Ecnec) if they're to be located in the board meeting of the lender in June.

As the Ecnec meeting isn't taking place owing to the lockdown, the finance ministry would take the approval from the prime minister about the projects and send them to the WB. 

The federal government has sought $500 million from the WB's global fund focused on fighting the impact of coronavirus. 

"We have sought $1 billion in additional budget support from the WB for another fiscal year as we will require money to greatly help the economy recover," Kamal told The Daily Star yesterday.

The government will give attention to implementing the annual development programme to create jobs and also implement the stimulus packages, he said.

Among the development partners, the Asian Development Bank will release $600 million immediately. Kamal negotiated for $100 million a couple of days ago and for $500 million yesterday.

The finance minister is because of hold a video-conferencing with ADB President Masatsugu Asakawa today.

The government would search for avenues for whatever support it could get from the $6.5 billion coronavirus fund of the ADB.

The IMF has offered about $50 billion through its rapid-disbursing emergency financing facilities for low-income and emerging market countries that may potentially seek support. Of the IMF fund, $10 billion is offered by zero interest for the poorest members.

Bangladesh has sought $700 million in the first tranche against the country's quota.

The IMF and the finance minister would contain the negotiation this week and the proposal could be put at the board in-may, said a finance ministry official.

The crisis lender has assured Bangladesh of another $700 million within the next fiscal year.

Kamal is seeking $500 million each from the Islamic Development Bank and the Asian Infrastructure Development Bank and would hold talks with the presidents of the development partners over video-conferencing between April 25 and April 30.

Bangladesh isn't just looking for monetary support from the development partners. For example, it really is seeking any sorts of supports, including those for medical sector, from the bilateral partners, that have also been damaged by the COVID-19.

Bangladesh has considered the development partners as the country has been hit hard by the coronavirus impacts.

The virus has forced the government to go on lockdown since March 26, shutting factories and industries, suspending transport movement and enforcing social distancing.

Due to coronavirus, the GDP growth will be 2 % growth this year, the lowest since 1988, in line with the IMF.
Source: https://www.thedailystar.net

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