The Asian Development Bank (ADB) is expected to provide Bangladesh with $900 million in budgetary support by March 2025, according to a senior official from the finance ministry.

This financial aid aims to address the challenges arising from Bangladesh’s upcoming graduation from Least Developed Country (LDC) status in 2026, as well as support reforms in the country’s banking sector.

Out of the $900 million, $400 million could be disbursed as early as December this year to help Bangladesh navigate the challenges associated with its transition from LDC status. The remaining $500 million will be available by March next year, primarily to support banking sector reforms.

The announcement followed a meeting between a senior ADB delegation, Chief Adviser Professor Muhammad Yunus, and Finance Adviser Salehuddin Ahmed. Takeo Konishi, Director General for South Asia, led the ADB team, which included Edimon Ginting, the outgoing country director for Bangladesh, and Hoe Yun Jeong, the incoming country director.

During the discussions, key issues such as financial sector reforms, digitalization of tax systems, data transparency, energy, and private sector investment were explored. Chief Adviser Yunus emphasized the urgency of these reforms, stating, “We are in a ground zero situation. Everything needs to be done as quickly as possible.” He also highlighted the unique opportunity for institutional rebuilding following the ousting of the Sheikh Hasina-led Awami League government on August 5.

ADB’s South Asia Director, Takeo Konishi, reiterated the bank’s long-standing relationship with Bangladesh and expressed ADB’s willingness to support the interim government in implementing structural reforms. He noted room for policy-based lending as the interim government moves to stabilize the economy.