The national flag of Bangladesh.
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Dhaka: The Asian Development Bank and the World Bank have approved loans worth $1.5 billion to help Bangladesh reform its banking sector, fight climate change among other projects, according to a media report on Friday.
The Asian Development Bank (ADB) approved a $900 million loan, of which $500 million will support efforts to stabilise and reform the country’s banking sector, while the remaining $400 million will promote climate-resilient and inclusive development initiatives, The Daily Star newspaper reported.
The $500 million policy-based loan aims to strengthen governance, asset quality and stability within Bangladesh's banking system, the ADB said in a statement on Thursday.
Separately, the ADB also approved a $400 million loan for the second phase of the Climate-Resilient Inclusive Development Programme (CRIDP) aimed at supporting Bangladesh's efforts to adapt to climate change, cut emissions and foster inclusive economic growth.
Also on Thursday, the World Bank (WB) approved $640 million for two projects aimed at enhancing gas supply and improving air quality in Bangladesh.
With the ADB and WB approvals, Bangladesh is set to receive more than $1.5 billion -- a development that will ease the continued strain on its foreign currency reserves.