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WB promises $lb credit

IMF assures Saifur to help mitigate trade losses in post-MFA regime

Staff Correspondent
The World Bank has assured Bangladesh of over USS1 billion in credits this year.
During a meeting in Washington Wednesday, WB high officials informed Finance Minister Saifur Ralrman that within the next few weeks the bank would approve over $600 million in Development Support Credit, Education Sector Adjustment Credit, and Bank Modernisation and Enterprise Growth Credit for Bangladesh as budget support.
The WB executives led by South Asia Regional Vice President Praful C Patel also said another five projects in education, water, communications and power sectors involving more than $400 million were expected to be approved by the bank's board shortly, a foreign ministry press release said.
In another meeting earlier in the day, the International Monetary Fund (IMF) assured Bangladesh of
providing balance of payments support, if needed, to overcome any trade losses in the post Multi-Fibre Agreement (MFA) situation.
IMF Acting Managing Director Anne O Krueger told Saifur that the support would come through the fund's newly introduced Trade IntegrationMechanismfacility.
Krueger said Bangladesh was on track regarding the Poverty Reduction Growth Facility (PRGF) programme and thefuture tranches
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of IMF assistance under the programme would continue as per the schedule.
On Wednesday the finance minister also met USAID Administrator Andrew S Natsios. Natsios promised to do his best to help Bangladesh qualify for getting the USAID's assistance under its Millennium Challenge Account.
Finance Secretary Zakir Ahmed Khan, Bangladesh Ambassador to USA Syed Hasan Ahmad and WB Alternate Executive Director Akbar Ali Khan accompanied Saifur during the meetings.
The minister today will meet IMF Deputy Managing Director Takatoshi Kato, Director David Button, and WB President James D Wolfensohn.
Saifur left Dhaka on April 19 with a main mission to persuade the WB not to make a negative report on Bangladesh at the upcoming Bangladesh Development Forum (BDF) meeting. He feels that 'sensational' and 'untrue' press reports have created a 'baseless' negative image of the country which may influence the WB's report on Bangladesh at the BDF meet.
He is due back on April 26.