Written by The Banking Post
Bangladesh is likely to receive $250 million in budgetary support from the Asian Development Bank (ADB) within the next few months, offering timely relief to the government’s fiscal position.
Officials said an ADB mission recently gave a green signal following a review under the Strengthening Social Resilience Programme (Sub-Programme-2), paving the way for the disbursement.
“The ADB has assured us of providing the budget support. We are hopeful of getting the loan within a couple of months,” a senior Economic Relations Division official said.
The proposed financing will come as a policy-based loan, meaning funds will be released against the implementation of specific reform measures.
The support is aimed at strengthening Bangladesh’s social protection system, particularly for vulnerable groups affected by global economic volatility and climate-related risks. It will also help ease pressure on public finances as the country navigates inflationary challenges and prepares for its graduation from least-developed country status.
Officials said the programme will focus on improving targeting of beneficiaries using climate-risk data, expanding digital government-to-person (G2P) payment systems, and reducing leakages through enhanced verification mechanisms.
It also includes plans to streamline multiple social safety-net programmes under a unified registry and expand mobile healthcare services for marginalised urban populations.
“The mission held detailed discussions with relevant ministries and assured support at the earliest possible time,” another official said, expressing hope that a loan agreement would be signed soon.
The ADB had earlier extended a similar $250 million loan to support Bangladesh’s social safety-net programmes, as part of its broader multi-year engagement with the country.
