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about the possibility of securing a loan, a finance ministry official said, requesting anonymity.

To access the funds, the government must submit a needs assessment report detailing the war’s impact on the national budget and the additional financing required.

Once the report, along with the requirement, is submitted, the ADB will initiate the process of disbursing the loan.

“Bangladesh may get the funds within two to three months after submitting the report,” the official said.

While the lender has provided a broad outline of the eligibility criteria, it is expected to communicate the detailed terms and conditions to Dhaka soon, the official added.

The loan, if approved, will carry interest based on the Secured Overnight Financing Rate (SOFR), plus 75 basis points, or three-quarters of a percentage point, repayable over 10 years with a three‑year grace period.

The special package has two components. The first one is fast-disbursing budget support through ADB’s Countercyclical Support Facility to help governments stabilise economies and protect vulnerable populations.

The second component is under the Trade and Supply Chain Finance Programme to support the private sector in maintaining critical imports, including energy and food.

Finance ministry officials said that even before the package was announced, the government had formed a cabinet committee led by Finance Minister Amir Khosru Mahmud Chowdhury to devise a crisis management plan.

Based on its assessment, Bangladesh will seek support from different development partners, including the ADB.

The war has already strained Bangladesh’s economy. The government ordered nine liquefied natural gas (LNG) shipments in the past three weeks at higher costs.

The annual fossil fuel import bill could rise by $4.8 billion, a 40 percent increase from 2025 levels, due to the war, according to Zero Carbon Analytics.

ADB analysis shows disruptions to shipping routes amid the war have driven up costs and delivery times, extending risks beyond energy to petrochemicals and fertilisers, with potential knock-on effects on agriculture and food production.

Economies dependent on remittances and tourism face added vulnerabilities, while tightening financial conditions are pressuring currencies and capital flows.

BUDGET SUPPORT

The ADB is likely to provide $600 million in budget support by June as the second instalment of its economic management and governance reforms programme.

Budget support -- programme-based lending transferred directly to a government’s treasury -- helps ease pressure on foreign exchange reserves and meet financing needs.

The lender released the first tranche of $600 million in December 2024 following Bangladesh’s political transition.

An ADB mission visited Dhaka earlier this month to review progress on reform conditions.

Officials said most of the 17 conditions have been met, with the rest expected to be fulfilled within two months.

These conditions focus on improving state-owned enterprises and strengthening revenue collection by the National Board of Revenue.

In addition, Bangladesh may secure $300 million in co-financing from the Japan International Cooperation Agency and the OPEC Fund for International Development under the same programme.

The ADB is currently in discussions with both partners to finalise the additional support.