Bangladesh has signed a $450 million financing agreement with the World Bank to strengthen the country's financial safety net, enhance regulatory supervision and support structural reforms in the banking sector.
The agreement under the "Financial Sector Support Project II" was signed on Friday between the Government of Bangladesh and the International Development Association (IDA), the World Bank’s concessional lending arm.
Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky and World Bank Country Director for Bangladesh and Bhutan Jean Pesme signed the accord on behalf of their respective sides.
Key details of the financing package including the Project Durationis July 1, 2026 to June 30, 2031 the Implementing Agency is Bangladesh Bank, supervised by the Financial Institutions Division (FID) under the Ministry of Finance and Loan Terms 25-year maturity with a 5-year grace period also Interest Rate is 1.5 percent per annum on withdrawn credit.
While the agreement includes a maximum commitment fee of 0.50 percent annually on undisbursed funds, the World Bank has waived this fee for Bangladesh for the current fiscal year as in previous years.
The project focuses on modernizing financial regulations, enhancing institutional oversight and restoring stability to the banking industry. The World Bank remains Bangladesh's largest multilateral development partner, supporting ongoing economic reforms, infrastructure development and institutional governance across key sectors.
