Taking WB loan to tackle Rohingya crisis not a wise move: Experts

It will not be a wise decision to take loan from the World Bank (WB) and the International Monetary Fund (IMF) to rehabilitate the Rohingyas, said economists. Former governor of Bangladesh Bank, Dr Salehuddin Ahmed, said the government should not take any loan to rehabilitate the Rohingya refugees as it would not be a good sign for the nation. He also said the impact of such credit would be reflected in the economy.

He believes the government can accept a grant to provide the refugees with food, healthcare facilities and other necessities. On the contrary, former adviser to the caretaker government, Dr AB Mirza Azizul Islam, said the government can take a soft loan to meet the necessities of the Rohingyas, but not a hard loan. “The government should take a soft loan only to provide food, medical facilities and other necessities. It can take a loan from the WB or IMF to reduce the pressure on the national budget,” he explained.

Otherwise, the government will have to reduce the allocation of the development programme, he argued.

There is no chance to avoid the expenditure on over half a million Rohingya refugees in the budget and thus the government has to keep it in mind while preparing the budget, he noted.

Lead economist of the WB Dhaka office, Dr Zahid Hussain, said there is a Refugee Programme of the WB. Bangladesh may borrow a maximum amount of  $400 million to tackle the emergency, he added.

He said the amount could come as a grant or credit, depending on the government’s negotiation abilities. Dr Hussain, however, believes both windows are open for Bangladesh at this moment to tackle the Rohingya crisis. He said there is a guideline for the Rohingya programme, but no specific rule or policy. The WB has already said it is ready to move with a programme of support for the government, host communities, and the Rohingya refugees. The value of the WB investment is yet to be decided, but the programme of support could include expanding access to health, education, water, sanitation and roads.

 

Taking WB loan to tackle Rohingya crisis not a wise move: Experts

It will not be a wise decision to take loan from the World Bank (WB) and the International Monetary Fund (IMF) to rehabilitate the Rohingyas, said economists. Former governor of Bangladesh Bank, Dr Salehuddin Ahmed, said the government should not take any loan to rehabilitate the Rohingya refugees as it would not be a good sign for the nation. He also said the impact of such credit would be reflected in the economy. He believes the government can accept a grant to provide the refugees with food, healthcare facilities and other necessities. On the contrary, former adviser to the caretaker government, Dr AB Mirza Azizul Islam, said the government can take a soft loan to meet the necessities of the Rohingyas, but not a hard loan. The government should take a soft loan only to provide food, medical facilities and other necessities. It can take a loan from the WB or IMF to reduce the pressure on the national budget, he explained. Otherwise, the government will have to reduce the allocation of the development programme, he argued. There is no chance to avoid the expenditure on over half a million Rohingya refugees in the budget and thus the government has to keep it in mind while preparing the budget, he noted. Lead economist of the WB Dhaka office, Dr Zahid Hussain, said there is a Refugee Programme of the WB. Bangladesh may borrow a maximum amount of $400 million to tackle the emergency, he added. He said the amount could come as a grant or credit, depending on the governments negotiation abilities. Dr Hussain, however, believes both windows are open for Bangladesh at this moment to tackle the Rohingya crisis. He said there is a guideline for the Rohingya programme, but no specific rule or policy. The WB has already said it is ready to move with a programme of support for the government, host communities, and the Rohingya refugees. The value of the WB investment is yet to be decided, but the programme of support could include expanding access to health, education, water, sanitation and roads.