ADB Warns Of '2nd Round' Recession Effects
Thursday, 23 July 2009

Bangladesh has not felt the initial impact of the global recession as hard as some countries, but prolonged effects could hit Bangladeshi exports, especially RMG and textiles, said visiting ADB president Haruhiko Kuroda on Thursday.

"Bangladesh has not been hit as hard by the global financial crisis as most economies in the Asia and Pacific region, partly due to its long tract record of prudent macroeconomic management," said Kuroda, who arrived in Dhaka earlier in the day on a two-day visit.

"However, it has begun to feel the second round effects of the global slowdown through slower growth of exports, worker remittances and government revenues, along with declining imports," Kuroda told a press briefing in the Pan Pacific Sonargaon Hotel.

He said the worst hit would be Bangladesh's main exports, ready-made garments and textiles.

Kuroda, after meetings with prime minister Sheikh Hasina and finance minister AMA Muhith earlier in the day, pledged to increase the Asian Development Bank's annual contribution to Bangladesh by $200m, from $600m to $800m.

Muhith, after his meeting with the ADB chief, said Bangladesh was seeking $500m in 'emergency aid' from a fund for developing countries hit by the world recession.

ADB has raised a fund of $3 billion to assist developing nations to overcome the effects of the global economic recession.

"We have requested $500 million from the fund on an emergency basis," said Muhith.

Source: bdnews24.com

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