The New Nation - Internet Edition

BSS, Dhaka

The World Bank (WB) has simplified terms and conditions of loans for Bangladesh and other least developed countries (LDCs).

Under this, the LDCs will be allowed to transfer sanctioned funds against any project to any other project in case of failure to implement that project.

The decision was taken at the annual conference of the WB and the IMF held at Istanbul from October 6 to 7.

Finance Minister Abul Mal Abdul Muhith told this while briefing journalists at the VIIP Lounge of Zia International Airport on Friday morning on his arrival after attending the conference.

Finance Secretary Dr Mohammad Tareque and Bangladesh Bank Governor Dr Atiur Rahman were present.

At the conference, it was decided that the donors would release funds speedily and the terms and conditions for loans would be simplified, the minister said adding that the donors committed to provide additional assistance for Bangladesh.

They have also assured Bangladesh of increasing their assistance for Bangladesh's budget implementation, he added.

Replying to a question on allocation of funds for implementing second Poverty Reduction Strategy Paper (PRSP), Muhith said high officials of the WB and the IMF would visit Dhaka this month to discuss this.

During the conference, main discussions were held on how to overcome the global financial recession and the impact of financial meltdown. They suggested that the countries, especially the LDCs, should increase social safety net, boost investment and generate more employment and stressed the need for global investment, the minister mentioned.

The participants, especially from the LDCs, demanded for ensuring participation of the representatives from LDCs in the G- 20 and G-24 summits.

Muhith said, "Global recession was due to uncontrolled banking in all countries and to overcome this, governors of central banks from all countries held a meeting."

During the conference, the WB and IMF groups agreed to work jointly for overcoming the shock of the global economic recession and they urged the donors to simplify the terms and conditions for loans, he said.

"Bangladesh don't expect more assistance from the IMF, as the organisation provides help for maintaining the country's Balance of Payment (BoP), which is already higher on favourable current account balance," the minister said.

He said during his stay in Istanbul, he held meetings with his counterparts of Saudi Arabia, India, the Netherlands and Turkey.

It was discussed at the conference that the WB and the IMF had made no contributions to the LDCs to overcome the impacts of the financial recession and urged the donor agencies to provide necessary supports for the poor states, the minister said.

The assistance programme for the LDCs to overcome the impacts of global warming pledged at the Bali conference was not yet finalised, Muhith said quoting that Bangladesh has claimed US$ four billion as compensations for helping people affected by Aila and other natural hazards due to climate change.

The minister said during the conference the donors now pay more attentions to the LDCs after China and India emerged as strong economies.