Bangladesh will have an access to Islamic Development Bank’s fund for financing oil imports up to S 1.5 billion annually, while the bank will examine loans at a lower rate onh for the portion to be provided from its own resources.

The IDB gave the broad hint during a bilateral discussion between Finance Adviser Mirza Azizul Islam and high officials ot the bank on the sidelines of the annual conference of the IDB s Board of Governors June 3-4 in Jeddah.

The Bangladesh delegation to the conference, led by the finance adviser, requested IDB to double its financing for oil impons to S 2 billion from existing S 1 billion annually as the country is strug gling to meet the increased requirement from domestic sources.

“They (IDB) feel it difficult to

formally raise the ceiling. But if we need to an extent of $ 1.5 billion, they feel that should not be a problem,” the finance adviser told reporters at Zia International Airport yesterday, on return from the conference.

He said Bangladesh also requested the finance at a lower rate only for the portion from IDB's own resources.

"They (IDB) will examine the concessional element of the financing... the response seemed to be good,” the adviser said, adding that Ije has been given an assurance that they will continue to finance at a rate of LIBOR plus 1.75 percent (over 4 percent).

From this year, IDB's trade-financing window Islamic Trade Finance Corporation (ITFC) will deal with the trade financing issues, including imports of fuel oil and agriculture inputs.

The ITFC has been established to promote trade of the IDB member countries through providing trade finance and engaging in activities that facilitate intra-trade and international trade.

The annual conference, the finance adviser said, has decided to set up a $ 1.5 billion fund in the IDB over next five years to assist member countries, particularly the LDCs including Bangladesh, to deal with the food security issues in view of the global price situation.

The assistance will come partly, in the form of budget support and partly as developing agriculture infrastructure like irrigation facilities and importing agriculture inputs like fertiliser and irrigation pumps. "Details will be worked out later,” the adviser added.

The meeting also focused on the climate change and adaptation and mitigation issues, and decided to examine further a proposal to set up a fund in this regard, said the adviser, who was among only three to speak at the inaugural session of the conference.

He said the energy price issues also came up for discussion, but did not make headway for "special sensitivity."

Replying to a question, he merely said: "It's because of location... 1 hope you'll understand."

About the possibility of raising oil prices at home, the finance adviser reiterated that he does not know when and how the price will beadjusted.