Japan and Islamic Development Bank to provide more than US$1 billion in budget support to Bangladesh
The Japan International Cooperation Agency (JICA) and the Islamic Development Bank (IsDB) have agreed to provide support of US$1 billion and US$182 million respectively in budget support to meet Bangladesh’s growing expenditure needs during the COVID-19 pandemic.
JICA is working with officials from Japan's Economics Relations Division (ERD) to decide on how to allocate the budget support. Furthermore, the Islamic Development Bank (IsDB) will provide US$60 million in new funding and will redirect US$122 million from projects the Islamic Development Bank (IsDB) is already financing in the country.
While it normally provides project aid, JICA responded to Dhaka’s call for budget support as the COVID-19 pandemic worsens poverty in the country, and more than 1.5 million poor and vulnerable people have lost their livelihoods due to the shutdown. The budget aid will not affect ongoing financing to JICA-supported projects in Bangladesh.
Bangladesh has also sought US$1.3 billion from the Asian Development Bank and US$500 million from the World Bank and the Asian Infrastructure Investment Bank for next year’s budget, which includes a US$11.2 million (BDT956.2 billion) stimulus package.
The IsDB has also announced a US$2.3 billion package to support its 57 member countries tackle COVID-19.