Home Bank & Finance World Bank wants 5 percent interest instead of 2 percent
Bank & Finance - October 2, 2023

World Bank wants 5 percent interest instead of 2 percent

Is it economic embargo?

Staff Correspondent: The International Development Association (IDA) is a subsidiary of the World Bank for providing low-interest flexible loans, with Bangladesh as its largest customer. IDA loan service charge is 0.75% and interest rate is 1.25%. Both together are 2 percent. A commitment fee of 0.50% per annum is payable on undrawn financing status. Loan grace period or installment exemption is 5 years. And to be paid in 30 years. However, the World Bank has proposed an increase in the interest rate from 2 to 5 percent.
On Sunday (October 1), Country Director of the World Bank Abdoulayeq Sec paid a courtesy call on Prime Minister’s Adviser on Private Industry and Investment Salman F. Rahman at the Bangladesh Investment Development Authority-BIDA office in Agargaon, in the capital. At this time, the World Bank country director proposed to Bangladesh to take a loan at 5 percent interest.
He also said that the interest rate on the World Bank loan will increase. Interest rates are rising all over the world. The World Bank is still giving us low interest loans. Offered non-concessional loans to Bangladesh. They want 5 percent interest on the loan. It’s too much. We usually get loans at a rate of 2 percent. As we graduated, we did not get loans from the International Development Agency (IDA), a subsidiary of the World Bank.
Economists narrated the proposal as a part of economic embargo on the country by the donor agency.

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