ADB steps up loans

According to the new country strategy paper of the Asian Development Bank (ADB), the lending institution has broadened its loan base to USD 8 billion over the next five years to Bangladesh to cover a wide range of areas for development. That ADB is now concentrating beyond infrastructure to include much needed assistance in developing human capital and other areas where help is sorely needed shows growing confidence in Bangladesh's ability to absorb and utilise these funds. Half the loans will be on concessional terms and the rest will be lent at market rates.

This is very much welcome news for the country. That we have high investment needs is not in question. The two primary issues we need to address from our side is our negotiating skills in getting the best possible rates of interests on the loans that will be treated as commercial, and, developing the capacity to implement projects on time. It is imperative that since USD 4 billion of the funds on offer will be lent at commercial rates, we prioritise the most urgent projects for the national economy to be financed with these monies. Lastly, policymakers must keep a tight lid on project completion dates because any delays inevitably lead to cost overruns, and that is something we can do without.