$75m IDA loan to recover from flood loss

The World Bank has approved $75 million International Development Association (IDA) credit as flood assistance to Bangladesh.
The additional financing to the Fourth Development Support Credit (DSC IV) is designed to meet the unanticipated gap in the government budget that is arising out of flood-related spending.
It will also help absorb unforeseen pressure on the foreign exchange reserves that may occur as a result of emergency imports, particularly those related to food, said a press release yesterday.
The credit from the IDA, the World Bank's concessionary arm, has 40 years to maturity, including a 10-year grace period, and carries a service charge of 0.75 percent.
'The magnitude and devastation of the flood and the required response from the government are creating pressure on the budget," said Xian Zhu, World Bank country director for Bangladesh.
'This quick disbursing financing will provide resources at a time when the full impact of the disaster on government revenues is unknown, and there is an urgent need for additional government expenditures," he said.
"It will assist the government in covering immediate needs for relief, livelihood support, and reconstruction by accessing financial assistance necessary to mitigate the impact of the floods," Zhu added.
Policy and institutional reforms in Bangladesh have been supported by the World Bank through a series of budget support operations, known as Development Support Credits (DSCs).