News
Bangladesh Pursues US$2 Billion in Loans to Address Energy Crisis
Bangladesh is seeking approximately US$2 billion in loans from multilateral agencies to address energy security concerns. The move comes amidst rising global fuel prices, exacerbated by the conflict in the Middle East.
Bangladesh is working to secure loans from multilateral agencies to stabilize energy supplies during increasing global fuel prices. Rashed Al Titumir, the prime minister's finance and planning advisor, said part of a three-pronged government plan involves securing loans. According to Titumir, the International Monetary Fund has committed US$1.3 billion, and the Asian Development Bank has pledged US$500 million as budget support. Titumir added that the government is seeking early disbursement of the loans. Bangladesh may also request financial assistance from the World Bank. Titumir said that Bangladesh has limited options other than seeking loans, as it wants to preserve its foreign currency reserves.
Key Facts
- Bangladesh is seeking around US$2 billion in loans from multilateral agencies.
- The loan aims to address energy security concerns amidst rising global fuel prices.
- The International Monetary Fund has committed US$1.3 billion.
- The Asian Development Bank has pledged US$500 million.
- Bangladesh has halted production at most fertilizer factories to curb fuel consumption.
- Bangladesh is exploring alternative energy sources in North America, South America, and Africa.
- The government has adopted a three-pronged approach to ensure sustainable energy supply.
Primary Source
Research Sources
- Malay Mail — Bangladesh seeks US$2b in loans to tackle energy crisis amid Middle East war