Bangladesh has signed a $300 million financing agreement with the World Bank’s International Development Association to support fertiliser availability during planting seasons and strengthen food security, particularly for smallholder farmers.
The financing, equivalent to SDR219.2 million, will fund the Emergency Support for Food Security Project from 1 July 2026 to 30 June 2027, according to the Economic Relations Division (ERD).
ERD Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the agreement on behalf of the two sides.
The Finance Division will implement the project in coordination with Bangladesh Chemical Industries Corporation and Bangladesh Agricultural Development Corporation.
The project is aimed at ensuring the availability of eligible fertilisers during planting seasons, with a focus on smallholder farmers.
The loan carries an annual interest rate of 1.5 per cent on the withdrawn credit balance and a maximum commitment fee of up to 0.50 per cent a year on the unwithdrawn financing balance.
The World Bank has, however, waived the commitment fee for Bangladesh for many years, including the current fiscal year.
The loan has a maturity of 25 years, including a five-year grace period.
The World Bank is Bangladesh’s largest multilateral development partner, with financing covering economic and social development, institutional reforms, infrastructure and energy.
