World Bank says assessing impact of Bangladesh events on its loan program

The World Bank on Monday said it was assessing the impact of events in Bangladesh on its loan program with the country after its Prime Minister Sheikh Hasina resigned and fled.

Hasina’s exit came after hundreds of people were killed in a crackdown on demonstrations that began as protests against preferential job quotas and swelled into a movement demanding her downfall.

“We mourn the violence and tragic loss of life that has taken place in recent weeks in Bangladesh and hope for a swift and peaceful resolution. We are assessing the impact of the unfolding situation on the World Bank Group program and remain committed to supporting the development aspirations of the people of Bangladesh,” a spokesperson for the bank said.

The World Bank’s board in June approved two projects totaling $900 million to help Bangladesh strengthen fiscal and financial sector policies and improve urban infrastructure to ensure sustainable and climate-resistant growth.

The World Bank was among the first development partners to support Bangladesh following its independence. Since then, the bank has committed about $41 billion in grants and interest-free credits to the disaster-prone country.

The World Bank Group had total commitments in Bangladesh of $2.85 billion in fiscal year 2024, ended June 30, according to the bank’s website.