DHAKA, 28 June 2022, (TON): The government has sought $1 billion in loans as a budgetary support from the World Bank to contain the rising inflation in the country.
The ongoing Russia-Ukraine war has pushed the inflation up everywhere in the world.
According to the Economic Relations Division officials “a formal letter seeking the loan has been sent to the World Bank in the past week following recommendations by the finance division, which is now facing pressure to maintain ballooning subsidy on fertilizer, food and energy.”
The amount of subsidy on energy and fertilizer is likely to be Tk 50,000 crore in the new financial year following the price hike of those items in the international market while the monthly inflation in the country hit over 7 per cent in May, highest in the past one decade.
The ERD officials said “the finance division would hold talks on the World Bank conditions for the proposed budgetary support.”