ADB likely to endorse $500m budgetary aid

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The Asian Development Bank (ADB) board is likely to approve US$500 million worth of credit support for Bangladesh on Thursday (May 7) to help the latter meet its budget deficit during the current financial year (FY), officials said on Monday.

Following the approval, the government is expected to sign a loan agreement within 7-10 days to get the fiscal support, they also said.

A senior official of the Ministry of Finance (MoF) told the FE that proposal to approve $500 million budgetary support for Bangladesh will be placed before the Manila-based lender’s board meeting in its headquarter on May 7.

He said the ADB’s support will lend some breathing space to the government that is in difficulty in bankrolling the budget due to fall in revenue collection amid the COVID-19 pandemic.

Meanwhile, the government has also sought more budgetary support from the ADB for injecting money into the upcoming national budget, fearing a huge gap between its income and expenditure.

It has also sought budgetary support from the World Bank and the International Monetary Fund (IMF) too to bankroll the deficit financing, officials added.