Press Release

OPEC Fund supports development bank in Bangladesh

97/2005 September 8, Vienna, Austria
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An agreement for a US$5 million medium-term line of credit was signed today between the OPEC Fund for International Development and the Industrial Promotion and Development Company of Bangladesh (IPDC), a majority privately-owned development finance institution.

The loan will allow IPDC to continue its growth and increase its support to the private sector, in particular to the country's small and medium-size enterprises (SME). Indirectly, it will also help develop Bangladesh's capital market and facilitate the upgrading, expansion and diversification of financial services in the country.

Since 1991, Bangladesh has been pursuing a policy of economic reform aimed at fostering growth in its small but vibrant private sector. Recent reform actions in fiscal management, governance, state-owned enterprises, banking, telecommunications and energy have shown encouraging results. Foreign direct investment flows have supported infrastructure, energy and export-oriented manufacturing.

This is the second line of credit extended by the Fund to IPDC. However, substantial, cumulative assistance totaling US$293 million has been given to the public sector in the form of project and program loans as well as balance of payments support. Bangladesh has also been the recipient of technical assistance grants benefiting agriculture and health schemes, and of grants for research and emergency aid. In May 2000, an agreement for the encouragement and protection of investment was entered into between the Fund and the government of Bangladesh.

Today's signing ceremony took place at the Fund's headquarters in Vienna. The agreement was signed by Mr. John Harris, Member of the Board of Directors of IPDC, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.