Desk Report
Publish: 29 Nov 2021, 09:49 pm
Asian Development Bank (ADB) || Photo: Collected
The
Asian Development Bank (ADB) and the government of Bangladesh today signed
agreements for $150 million in loan to provide financing for cottage, micro,
and small-sized enterprises (CMSEs) to create jobs for promoting socio-economic
recovery after the COVID-19 pandemic.
The
assistance under the Supporting Post-COVID-19 Small-Scale Employment Creation
Project will rejuvenate CMSEs operated by youth, rural entrepreneurs, returning
migrant workers, particularly women, who have been hit hard by the pandemic.
Fatima
Yasmin, Secretary, Economic Relations Division (ERD), and Edimon Ginting,
Country Director, ADB, signed the agreements on behalf of Bangladesh and ADB,
respectively held at a ceremony at ERD in the capital, said an ADB press
release.
"The
assistance will support government's efforts to accelerate socioeconomic
recovery from the COVID-19 pandemic," said Fatima Yasmin, Secretary for
ERD.
"This
project will reinforce ADB's long-standing support to Bangladesh in financial
inclusion and address key barriers for financing CMSEs by developing a
comprehensive action plan that will tackle sector-wide challenges, promote best
practices at the banks, and expand training and business development support to
the borrowers," said Country Director Edimon Ginting.
"The
project will also balance the affordability and availability of loans in
addition to adopting innovative approaches so that lower loan interest rates do
not disincentivize banks' lending to CMSEs," Ginting added.
The
loan to Bangladesh Bank, the nation's central bank, will be on-lent to participating
financial institutions (PFIs), which in turn will help 30,000 CMSEs operated by
the beneficiaries.
The
project will create at least 45,000 employment opportunities by December 2025.
It has targeted to disburse 20 percent of the funds to micro business led by
women to support their recovery as they have limited access to finance and have
severely been affected by the pandemic due to their high concentration in
retail, travel, and hospitality sectors.
ADB
will provide an additional $900,000 technical assistance grant from its
Technical Assistance Special Fund for Bangladesh Bank and participating financial
institutions to help them strengthen their risk management capacities, business
process, and information systems.
The
assistance will also boost their support of CMSEs by incorporating mobile
finance, value chain financing, and sustainable financing tackling climate
change.
Subscribe Shampratik Deshkal Youtube Channel
Topic : Asian Development Bank Bangladesh
© 2024 Shampratik Deshkal All Rights Reserved. Design & Developed By Root Soft Bangladesh