World Bank approves 200 mln dollar loan for Bangladesh

DHAKA, May 30 (Reuters) The World Bank today approved a 200 million dollars loan to Bangladesh to aid development.

It has now provided 1.1 billion dollars in loans since 2003, including 200 million dollars credit in support of education reform.

''The DSC (Development Support Credit) supports key aspects of the government's reform agenda aimed at strengthening prospects for stronger economic growth, improved governance, and faster poverty reduction in Bangladesh,'' said Xian Zhu, World Bank Country Director for Bangladesh.

''Poverty fell by 9 per cent between 2000 and 2005, economic growth is at historically high levels, and most of the Millennium Development Goals are on track.'' Nearly half of Bangladesh's 140 million people still live on less than 1 dollar a day.

While Bangladesh has struggled with poor governance and perceptions of high corruption, significant reforms have been undertaken to reduce the opportunities for corruption, the World Bank said.

The credit from the International Development Association (IDA), the World Bank's concessionary arm, has a maturity of 40 years with a 10-year grace period; it carries a service charge of 0.75 per cent.

Reuters SKB DB1131