US to discuss economic support for Bangladesh interim government

(Reuters) -U.S. officials will hold talks with Bangladesh's interim government to see how the United States can support the country's economy and development, the U.S. State and Treasury departments said on Tuesday.

An interim government led by Nobel Peace laureate Muhammad Yunus was sworn in last month with the aim of holding elections in the South Asian nation after the ouster of prime minister Sheikh Hasina following deadly protests.

A State Department statement said Donald Lu, assistant secretary for South Asia, will be part of a U.S. delegation holding meetings with the Bangladeshi interim government. Lu will also visit India during the Sept. 10-16 trip.

The State Department said the delegation would include representatives from the Treasury, USAID, and the Office of the U.S. Trade Representative.

"U.S. and Bangladeshi officials will discuss how the United States can support Bangladesh’s economic growth, financial stability and development needs," the statement said.

A U.S. Treasury spokesperson said the delegation was expected to meet with high-level members of the interim government, including Yunus, foreign affairs adviser Mohammad Touhid Hossain, finance and commerce adviser Salehuddin Ahmed, and Bangladesh Bank Governor Ahsan Mansur.

"The United States is optimistic that, by implementing needed reforms, Bangladesh can address its economic vulnerabilities and build a foundation for continued growth and increased prosperity," Brent Neiman, assistant Treasury secretary for international finance, said in a statement.

Bangladesh's $450-billion economy has slowed sharply since the Russia-Ukraine war pushed up prices of fuel and food imports, forcing it to turn to the International Monetary Fund last year for a $4.7-billion bailout.

In India, Lu and Jedidiah Royal, U.S. principal deputy assistant secretary of defense for Indo-Pacific security affairs, will discuss defense cooperation and ways to expand U.S.-India collaboration in the Indo-Pacific and beyond, the State Department statement said.

(Reporting by Gursimran Kaur in Bengaluru, Ruma Paul in Dhaka, David Brunnstrom and David Lawder in Washington; Writing by Sudipto Ganguly; Editing by Jamie Freed, Clarence Fernandez, Christina Fincher and Leslie Adler)