Dhaka, January 28, 2008: The Government of Bangladesh today signed a credit agreement worth US$ 100 million with the International Development Association (IDA) to help finance part of the FY08 resource gap, incurred as a result of the Cyclone Sidr.
The Second Additional Financing to the Fourth Development Support Credit (DSC IV) is a quick disbursing credit, and will allow the government to access financial assistance necessary to mitigate the impact of the Cyclone Sidr , high international prices for petroleum products and foodstuffs, and the continuing effects of the 2007 floods.
The agreement was signed at the Economic Relations Division this afternoon. Mr. M Aminul Islam Bhuiyan, Secretary, Economic Relations Division and Xian Zhu, World Bank Country Director, signed on behalf of the Government and the World Bank, respectively. The Finance Adviser Mr. A. B. M. Azizul Islam and Vice President of World Bank's South Asia Region Mr. Praful Patel were also present.
On January 10, 2008 the World Bank Board approved US$247 million to help Bangladesh recover from the dual shocks of the August flooding and November cyclone. The package also included the Second Additional Financing of US$100 million as well as reallocation of resources to priorities needs such as municipal services, rural transport and community development..
The credit from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.
For more information on the World Bank in Bangladesh, please visit: http://www.worldbank.org.bd