The Asian Infrastructure Investment Bank (AIIB) is expected to increase its funding to Bangladesh in the upcoming years, with the country potentially becoming the primary recipient of climate-related financing from the multinational development institution.

AIIB acting vice-president Rajat Misra said: "We don't have any limits on our lending to Bangladesh right now. We can definitely take it up substantially and that was also my request to the Finance Minister." 

He was replying to a query from a reporter after he made a courtesy call on Finance Minister Abul Hassan Mahmood Ali at his secretariat office in Dhaka today (March 4).

Noting that Bangladesh is the fifth largest borrower of AIIB with approvals around $3.5 billion, Misra said: "We're primarily an infrastructure finance bank. So, we also want to be a partner of Bangladesh's development in infrastructure. Because, the country is developing in infrastructure in a rapid pace with new metro line commissioned. So, we definitely would like to do more."

Secondly, he said they are also working on some critical areas like climate finance. "So, we're putting together a policy on climate finance. And again with Bangladesh, we're discussing an advanced stage on one project and that would be the first project to be approved by the AIIB on climate finance. So, we're having a very valuable partnership with Bangladesh in both way."

Replying to another question, the AIIB acting vice-president said, "We're putting in place on our policy and also working on the projects simultaneously. We hope in the next three months, there will be something...."

Finance Minister Mahmood Ali said the government is very much happy that the AIIB have the investments and lending policy that suits the requirements of Bangladesh. "They (AIIB) are also happy and they're very close to us...We're happy that they are in a position to help us," he added.

BDST: 1618 HRS, MAR 05, 2024
MN/SMS