Combating Natural Disasters: World Bank offers $250m soft loan | The Daily Star
Skip to main content
E-paper বাংলা
T
Latest
Boeing bids adieu to an icon, delivers last 747 jumbo jet Power Lines to Bangladesh: PIL filed against Adani Group at Calcutta HC By-polls swept by the blessed ones Modi's patronisation of Adani and its cost for Bangladesh Spot LNG purchase resumes after seven months Mistakes in textbooks: DU prof says won't take part in probe committee PM pays courtesy call to president Gill hundred flattens New Zealand as India win series decider Influencers and the ethics of enhancement surgery SC stays HC order seeking list of dead Bangladeshi workers in Qatar World Cup SC chamber judge delivers 160 orders in Bangla Bangladesh received $10,493m as remittance in current fiscal: PM Fitness sham Banks to pay Tk 1 more for exporters’ dollars Supply fuel oil on deferred payment Dhaka requests Riyadh
The Daily Star
Journalism Without Fear or Favour
Thursday, February 2, 2023
  • E-paper
  • বাংলা
Latest
Boeing bids adieu to an icon, delivers last 747 jumbo jet Power Lines to Bangladesh: PIL filed against Adani Group at Calcutta HC By-polls swept by the blessed ones Modi's patronisation of Adani and its cost for Bangladesh Spot LNG purchase resumes after seven months Mistakes in textbooks: DU prof says won't take part in probe committee PM pays courtesy call to president Gill hundred flattens New Zealand as India win series decider Influencers and the ethics of enhancement surgery SC stays HC order seeking list of dead Bangladeshi workers in Qatar World Cup SC chamber judge delivers 160 orders in Bangla Bangladesh received $10,493m as remittance in current fiscal: PM Fitness sham Banks to pay Tk 1 more for exporters’ dollars Supply fuel oil on deferred payment Dhaka requests Riyadh
The Daily Star
Thursday, February 2, 2023 | Journalism Without Fear or Favour
  • Home
  • News
    • Bangladesh
    • Asia
    • World
  • Opinion
    • Views
    • Editorial
    • Letters to the Editor
  • Health
    • Diseases
    • Healthcare
    • Food
  • Sports
    • Cricket
    • Football
    • More Sports
  • Business
    • Economy
    • Global Economy
    • Organisation News
  • Entertainment
    • TV & Film
    • Music
    • Theatre & Arts
  • Culture
    • Art & Design
    • Books
  • Life & Living
    • Fashion & Beauty
    • Food & Recipes
    • Health & Fitness
  • Youth
    • Education
    • Careers
    • Young Icons
  • Tech & Startup
    • Science, Gadgets, and Tech
    • Startups
    • Automobiles
  • Feature
    • Lifestyle
    • Arts & Entertainment
    • Showbiz
    • Star Health
    • Satireday
    • Shout
    • Toggle
    • Star Literature
    • In Focus
    • Star Youth
    • Law & Our Rights
    • Daily Star Books
    • Roundtables
    • Supplements
  • Environment
    • Climate crisis
    • Natural resources
    • Pollution
  • NRB
বাংলা T
  • Home
  • News
    • Bangladesh
    • Asia
    • World
  • Opinion
    • Views
    • Editorial
    • Letters to the Editor
  • Health
    • Diseases
    • Healthcare
    • Food
  • Sports
    • Cricket
    • Football
    • More Sports
  • Business
    • Economy
    • Global Economy
    • Organisation News
  • Entertainment
    • TV & Film
    • Music
    • Theatre & Arts
  • Culture
    • Art & Design
    • Books
  • Life & Living
    • Fashion & Beauty
    • Food & Recipes
    • Health & Fitness
  • Youth
    • Education
    • Careers
    • Young Icons
  • Tech & Startup
    • Science, Gadgets, and Tech
    • Startups
    • Automobiles
  • Feature
    • Lifestyle
    • Arts & Entertainment
    • Showbiz
    • Star Health
    • Satireday
    • Shout
    • Toggle
    • Star Literature
    • In Focus
    • Star Youth
    • Law & Our Rights
    • Daily Star Books
    • Roundtables
    • Supplements
  • Environment
    • Climate crisis
    • Natural resources
    • Pollution
  • NRB

  • About Us
  • Contact Us
  • Apps
  • Comment Policy
  • RSS
  • Sitemap
  • Advertisement
  • Newsletter
  • Privacy Policy
  • Conference Hall
  • Archives
Front Page

Combating Natural Disasters: World Bank offers $250m soft loan

Rejaul Karim Byron
Sat Aug 26, 2017 12:00 AM Last update on: Sat Aug 26, 2017 03:21 AM

The World Bank has offered a low-cost loan of $250 million to Bangladesh for tackling natural disasters.

The loan is available from a new financing window, Catastrophe Deferred Drawdown Option (Cat DDO), of the global financial institution at an interest rate of 0.75 percent. It is repayable in 38 years, with a grace period of eight years.

For all latest news, follow The Daily Star's Google News channel.

The WB made the offer to the Economic Relations Division (ERD) early this month. It came at a time when the country's many northern and central districts have been witnessing flood.

Bangladesh is the sixth most climate-vulnerable country in the world, according to Global Climate Risk Index 2017.

A finance ministry official said Bangladesh for the first time received a financing proposal from the WB's new financing window.

According to the offer, the loan will be disbursed over three years. However, the tenure can be extended for another three years if the total amount is not drawn within this period.

An ERD official said they sent the WB proposal to the related ministries and the Finance Division. After getting opinion from the ministries, the ERD will convey to the global financier whether the government would take the loan.

The WB in a presentation at the ERD said Bangladesh was highly vulnerable to disasters and climate change as its people were exposed to cyclone, flood, earthquake and drought.

The country's annual average loss from floods and cyclones is around $3.2 billion, which is 2.2 percent of the GDP.

Natural disasters in Bangladesh between 2000 and 2013 caused losses of more than $10 billion, but the total funding available for relief, rehabilitation, and reconstruction works in the same period was only $2 billion, said the global financial institution.

DISASTER MANAGEMENT PLAN

The disaster management and relief ministry in March drew up the National Plan for Disaster Management 2016-20.

According to the plan, the national economy was at risk from natural disaster events and climate stresses. A large chunk of Gross Domestic Product (GDP) is lost each year to these events.

It said there were 17 high- and medium-impact natural disasters in Bangladesh from 2010 to 2015, which caused economic losses.

Over the recent decade of 2005-2014, economic losses due to disasters amounted to more than $285 million, between 0.8 and 1.1 percent of GDP each year on an average.

A finance ministry official said the country's economy might suffer a big loss this year due to flood and heavy rains. He said the ministries concerned would make a damage need assessment next month when the figures of actual losses would be known.

According to him, the WB loan was a budget support which was not tagged with tough conditions like those in traditional budget support. Bangladesh could not avail the traditional budget support from the WB for a long time due to tough conditions.

Zahid Hussain, lead economist at the WB Dhaka office, said the Catastrophe Deferred Drawdown Option is a contingent credit line that allows IDA member countries to access a source of immediate liquidity to quickly respond to a natural disaster and/or health-related emergency.”

He said as part of a broad range of risk financing instruments available from the World Bank, an instrument like this could ensure immediate availability of funds for short term relief and long term recovery efforts, thus helping protect development priorities. 

Related topic
World Bank / loan / natural disasters
Apple Google
Click to comment

Comments

Comments Policy

Related News

Martin Raiser World Bank
Bangladesh

$1b WB loan unlikely this fiscal year

Football

Palace take Liverpool's Sakho on loan

Country

ADB extends loan for Bangladesh water project

agricultural price
Business

Agricultural prices likely to decline by 5% next year: World Bank

SHOUT

Climate-smart ideas showcased at Ideabuzz 2022

The Daily Star  | বাংলা
৮ ঘণ্টা আগে|বিদ্যুৎ ও জ্বালানি

৭ মাস পর স্পট মার্কেট থেকে এলএনজি কিনছে বাংলাদেশ

সাত মাস বন্ধ থাকার পর আবারো আন্তর্জাতিক স্পট মার্কেট থেকে তরলীকৃত প্রাকৃতিক গ্যাস (এলএনজি) কেনা শুরু করেছে বাংলাদেশ।

৮ ঘণ্টা আগে|নির্বাচন

ষড়যন্ত্র করে আমাকে হারিয়ে দেওয়া হয়েছে: হিরো আলম

The Daily Star
Follow Us
  • About Us
  • Contact Us
  • Apps
  • Comment Policy
  • RSS
  • Sitemap
  • Advertisement
  • Newsletter
  • Privacy Policy
  • Conference Hall
  • Archives
© 2023 thedailystar.net | Powered by: RSI LAB
Copyright: Any unauthorized use or reproduction of The Daily Star content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.