Government Now Turns to AIIB for $450m

Government Now Turns to AIIB for $450m

Bangladesh has sought $450 million from the Asian Infrastructure Investment Bank (AIIB) for this financial year to satisfy the emergency health expenditure and finance the huge stimulus packages the country has unveiled within the face of coronavirus outbreak.

The Economic Relations Division (ERD) has sent a letter to the Beijing-based multilateral lender for $200 million for the health sector and $250 million in budget support.

"Negotiations for the fund have begun. We hope to avail the fund within the current financial year ," said an ERD official.

 

Government Now Turns to AIIB for $450m

The World Bank has approved $100 million for the health sector in Bangladesh to assist the country combat the deadly bug. Now, $100 million from the AIIB would be used as co-financing within the project.

Another $100 million would be wont to found out communicable disease hospital at the country's eight divisional cities.

The fund isn't enough to create the hospitals, but the govt would be ready to start the projects with the help , the ERD official said.

Finance Minister AHM Mustafa Kamal is additionally seeking $500 million in budget support from the Beijing-based multilateral lender for subsequent two fiscal years to assist the country slipping into financial ruins from the countrywide pause in economic activities to flatten the curve of the lethal pathogen.

He made the requests while chatting with AIIB President Jin Liqun during a video conference yesterday.

The fund would be used for automation within the agriculture sector, agriculture produce, fruit and vegetable processing, cold-storage, leather processing, poultry and fish sectors.

"We have requested the AIIB to continue its support and assistance to assist us last out the crisis," Kamal said during a handout afterwards.

He has urged the AIIB to supply another $100 million to rehabilitate micro, small and medium enterprises.

Liqun told Kamal that the AIIB would actively consider the requests and there could be some change to the funding modalities, consistent with the handout . The ERD would now send formal requests to the AIIB.

The AIIB has doubled available funds under its COVID-19 Crisis Recovery Facility to supply $5 billion to $10 billion thanks to high client demand.

"The global economy is facing a formidable challenge. things is changing with each passing day. If we do not start to believe the economy now while tackling the pandemic, it might not be possible to return the economy to normalcy even in 2021," said Liqun within the handout .

Bangladesh is approaching multilateral development partners to mobilise funds for the stimulus packages it announced in response to the pandemic, which has thus far infected 4,186 people within the country and killed 127.

Prime Minister Sheikh Hasina announced a number of stimulus packages amounting Tk 95,619 crore, which is 3.3 per cent of the GDP, aimed toward aiding people's purchasing power, widening social safety nets, increasing funds and making capital available for the industries, service sector firms and cottage industries.

Bangladesh has approached the Asian Development Bank for $1.25 billion, $700 million from the International fund and $500 million from the Islamic Development Bank.

DJ Pandian, AIIB's vice-president for investment operations, also took part within the video conference.