Bangladesh central bank to mobilise $7 billion for infrastructure

DHAKA, Sept 20 (Reuters) - Bangladesh's central bank plans
to mobilise up to $7.0 billion to develop the country's
infrastructure and boost economic growth, its governor said on
Sunday.
The bank would help reach that sum by establishing a
sovereign wealth fund, issuing bonds and selling dollars from
its reserves to designated banks and financial institutions,
Governor Atiur Rahman told Reuters.
"It is possible to mobilise the fund for development of the
infrastructure to accelerate economic growth to 8 percent from
the present 6.5 percent, aiming to becoming a middle-income
country by 2021," he said.
"The proposed sovereign wealth fund (SWF) can invite other
SWFs to co-invest in infrastructure projects," he added.
Inward remittance is a major contributor to the country's
economic growth, according to the governor. Bangladesh's
reserves crossed $26-billion mark last Thursday mainly due to
lower import-payment pressure on the economy.
"We may provide foreign currency for big infrastructure
projects through receiving the equivalent amount of local
currency from the implementing agency so that it cannot create
any adverse effect," Atiur explained.
He said the central bank is ready to provide adequate
foreign funds for big projects, adding: "We may easily invest
$6-7 billion from our foreign exchange if it serves the interest
of people."
S A Samad, executive chairman of the state-run Board of
Investment, on Saturday told business leaders from bilateral
foreign chambers of commerce in Bangladesh that the government
wants to invest $8 billion over the next few years in
infrastructure to improve the economy.
"If the government provides favourable support like credit
from banks or issuing sovereign bonds, then the private sector
can come forward to invest," Masud Rahman, president of the
Canada-Bangladesh Chamber of Commerce and Industry (CanCham)
told Reuters after the meeting with Samad.