ADB approves $ 3mln loan to Bangladesh

By Staff
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Google Oneindia News

Dhaka, Feb 7 (UNI) The Asian Development Bank (ADB) will provide a three million dollar loan to Bangladesh to improve governance in the capital market and insurance sector.

An agreement on the loan was signed by the Bangladesh government and the ADB here today.

The project will help strengthen governance, regulation and supervision of the capital markets, boost the regulators' capacity and recommend increasing demand for and supply of securities by addressing the market gaps.

It will also support government-led reforms being pursued in the insurance sector, including a revamp of the insurance legislation and the establishment of a new regulatory authority based on international best practices.

Despite recent pickup, the capital market in Bangladesh remains underdeveloped with market capitalisation of only 7.5 per cent of the GDP, ADP country director Hua Du said.

''The assistance will help improve governance and reinforce investor confidence in Bangladesh's financial markets,'' she said.

She hoped that with better governance and greater investor participation, activities in the capital market and the insurance sector should be revived, and play a more significant role in mobilising long-term funds for infrastructure and industries, and for spurring economic growth.

UNI

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