Finance Minister AHM Mustafa Kamal on Thursday said that the World Bank (WB) will extend support to develop the country’s capital and bond market.
The minister revealed this to reporters after a meeting with WB’s Regional Director Zoubida Kherous Allaoua at his office in the capital.“We’ve to struggle hard to improve our economic level. For this, we’ve to enhance our capacity and the World Bank is ready to provide more support in this regard,” Kamal told a press conference.
The lender will also help in the economic sectors where Bangladesh is lagging behind, the minister added.
He said provided funds of the corporate sector will also be brought to improve the country’s bond market which the Prime Minister also agreed upon.
“At present, financial components are low in our economy. The economy becomes smaller if financial components remain low. We need many tools to accelerate our economy and we’re focused on it,” he said.
“Our bond market didn’t see any concrete development, it is the reality. So, it should be developed. Both the public and private sectors will come to the market. Once the bond market is developed, the share market will be developed as well,” he commented.
Mentioning that bond market fees have been lowered to make it more dynamic, he said the Bond market will be developed in such a way that small investors will find investment in bond market lucrative. “We must improve the bond market.”He added that the government is always supporting the share market and that good public sector companies will be brought into the capital market.
Zoubida Kherous Allaoua lauded the economic progress of Bangladesh and said it debt to GDP ratio is also good.
“It indicates a government’s economic stability. A solid economic foundation is required for a good future,” she said.
The WB will extend support for some technical assistance, regulatory reforms and policy development, she said, adding that a joint effort will be made with the government to develop local bond and share markets.