Government clears IFC proposal for ‘Taka Bond’ in global markets
7 October 2015, Nirapad News: The Bangladesh government has cleared the International Finance Corporation’s (IFC) proposal for issuing ‘Taka Bond’ worth $1 billion.
Bangladesh Bank governor Atiur Rahman told bdnews24.com that the government’s final approval has been received for issue of the bonds.
“It would be issued soonest possible after the IFC, Bangladesh Bank and the finance ministry work out the details,” the governor told bdnews24.com in Lima.
Rahman is in the Peruvian capital to attend the annual meeting of the World Bank and International Monetary Fund.
In April this year, IFC’s South Asia wing officials pitched the idea to Bangladesh Finance Minister AMA Muhith during a meeting at the World Bank (WB) headquarters in Washington.
The IFC, a member of the WB Group, then gave a formal proposal to the Bangladesh government and on Oct 4, the finance ministry gave its nod.
“This is a big thing, for the first time the Bangladeshi currency will be incorporated in the international financial market. The Taka will be traded in the London stock market,” said the Bangladesh Bank governor.
He said anyone could buy these bonds by paying in US dollars, which would be converted into Taka and invested.
Bangladesh officials will discuss the matter with IFC during the WB-IMF meeting in Lima, added Rahman.