Bangladesh will have to pay higher interest rates for taking loans from the International Develop-ment Association (IDA) of the World Bank as the country will be classified as an 'IDA gap' country by the lending agency from the next year.
The World Bank Country Director for Bangladesh, Bhutan and Nepal Qimiao Fan has recently informed Bangladesh about this development and requested the government to make necessary preparations.
In a recent letter sent to Finance Minister AMA Muhith, Fan said due to Bangladesh's improved economic performance its GNI per capita exceeded the IDA operational threshold for two consecutive years in FY 17and FY 18.
"In the event that Bangladesh's GNI per capita exceeds the operational threshold for the 3rd consecutive year, the country will be classified as an 'IDA gap' country starting in FY19 and will be subjected to IDA lending on blend terms," wrote the World Bank Country Director in the letter.
According to the letter, Bangladesh from the next fiscal year will have to pay 2 percent interest instead of the existing 0.75 percent
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