Bangladesh DSC IV-Supplemental Financing II

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The second additional financing (SF2) of the Fourth Development Support Credit of Bangladesh will help Government of Bangladesh (GOB) continue along the path of reforms needed to accelerate economic growth and poverty reduction. The SF2 credit will help GOB meet the immediate short-term needs by reducing the fiscal pressure on the FY08 budget arising from unforeseen cyclone-related spending, including the need to provide large amounts of cash and food aid (including rice) to address the consumption needs of the affected population. GOB has already redirected some of its budgetary resources for cyclone rescue and relief. Concessionary financing from development partners in support of the additional resource requirement would be critical in this hour of need.