Bangladesh is requesting $2 billion from the World Bank and the Asian Development Bank (AfDB) as part of efforts to boost its foreign exchange reserves, Bloomberg News reported Wednesday.
Bangladesh’s economy, worth $416 billion, has been one of the fastest growing in the world for years, but rising energy and food prices due to the Russian-Ukrainian war inflated its import bill and current account deficit.
The government wrote letters to the two lenders asking for $1 billion each, the report said, citing people familiar with the matter.
This comes days after Bangladesh daily star The newspaper reported that the country wanted $4.5 billion from the International Monetary Fund (IMF), including for fiscal and balance of payments support.
Bangladesh seeks $4.5bn IMF loan as foreign reserves dwindle
Last week, the IMF announced that it would discuss with Bangladesh its request for a loan.
The country’s Ministry of Finance, World Bank and AfDB did not immediately respond to Reuters requests for comments.
Bangladesh’s July-May current account deficit was $17.2 billion, down from a deficit of $2.78 billion a year earlier, central bank data showed, as its trade deficit narrowed. is widened and remittances have declined.
Bangladesh seeks IMF loan but economy not in trouble: finance minister