ADB, World Bank lend $1.5 billion to Bangladesh

Dhaka

The Asian Development Bank (ADB) and the World Bank have approved loans worth $1.5 billion to support major development efforts in Bangladesh. The funds will help improve the banking system, tackle climate change, and upgrade essential services, local media reported on Friday.

Out of the total, the ADB approved a $900 million loan. Of this, $500 million will go toward banking reforms. The goal is to improve governance, financial stability, and asset quality in Bangladesh's banking sector.

The remaining $400 million from ADB will support the second phase of the Climate-Resilient Inclusive Development Programme (CRIDP). This programme helps Bangladesh adjust to climate change, reduce carbon emissions, and promote economic growth that benefits all.

In a separate move, the World Bank approved $640 million for two important projects. One project will enhance the country’s gas supply. The other will work to improve air quality, both vital for long-term health and development.

These loans come at a time when Bangladesh’s foreign currency reserves have been under pressure. The new funds are expected to ease some of that strain and support the country’s broader financial and environmental goals.

The banking reform loan is especially important, as it targets long-term stability in the financial sector. Meanwhile, the climate-related and energy projects are designed to prepare Bangladesh for future challenges caused by climate change and pollution.

Altogether, the ADB and World Bank funding marks a strong boost to Bangladesh’s efforts toward a safer environment and a stronger economy.