DHAKA, Bangladesh — A high-ranking representative from the European Investment Bank has indicated the organization’s interest in significantly increasing its financial support for Bangladesh. However, she raised alarms regarding the country’s human rights situation amid ongoing political instability.
In a discussion with journalists, the Vice President of the bank, Nicola Beer, outlined that the European Union’s lending facility aims to back the reforms put in place by the interim government led by Nobel Peace Prize winner Muhammad Yunus. This administration took over after former Prime Minister Sheikh Hasina was removed from power following widespread protests in early August.
Bangladesh’s garment sector, which is crucial to its economy, benefits significantly from exports to the European Union, which is the nation’s largest market. This industry provides livelihoods for approximately 4 million workers, mainly women, and generates over $36 billion annually.
Beer emphasized that the bank is determined to double its financial portfolio for Bangladesh to around 2 billion euros (approximately $2.06 billion), while also endorsing the country’s efforts towards democratic governance, the rule of law, and the principles of free expression.
“We are indeed focusing on critical issues such as human rights, the rule of law, and freedom of expression,” she stated. “In our engagements, we consistently emphasize the necessity of safeguarding freedoms of speech and opinion, urging the current and future governments to uphold human and citizens’ rights.”
Sheikh Hasina has been residing in India since August 5, after fleeing the country. Yunus has committed to conducting elections either in December of this year or in the first half of 2026, depending on the advancement of reforms across different sectors.
However, Yunus faces backlash concerning issues related to law enforcement, inflation, the treatment of minority groups, and overall economic challenges following shutdowns of many factories due to labor unrest and inadequate security measures. According to a recent report from the Bureau of Statistics, the economy grew by just 1.8% in the quarter from July to September, with student-led disturbances hampering business operations.
Beer noted that she values the reform initiatives undertaken by Yunus’s government.
“What I gather from the business community is that they are expressing support for these reform measures that are being proposed,” she remarked. “Thus, as a bank, we aim to provide assistance, as this is critical for Bangladesh’s economy and for attracting both local and international investors.”
In October, the World Bank revised its fiscal year growth forecast down to 4%, attributing this reduction to “considerable uncertainties stemming from recent political upheaval.”
The European Investment Bank is engaged in numerous significant developmental projects, primarily centered around green energy, safe water access, communication, and addressing climate change.
During her three-day stay in Bangladesh, Beer inspected bank-financed initiatives and held discussions with officials, including Yunus.
She highlighted the need to focus on regional cooperation in infrastructure, such as establishing electricity grids that could connect to Nepal’s hydropower projects.
“I believe it is crucial to engage in dialogue within the region to maximize the benefits of interconnectivity; this represents a mutually beneficial opportunity for Bangladesh, as well as smaller neighboring countries like Bhutan, Nepal, and Myanmar. It could also prove advantageous for India,” she added.
