Bangladesh signs $250m bank loan manage World Bank
The federal government on Sunday signed financing agreement of US$ 250 million (budget support) with the International Development Association (IDA) of the World Lender Group to finance the "Second Jobs Development Policy Credit (DPC-2)" program.
Economic Relations Division (ERD) Secretary Fatima Yasmin and Mercy Tembon, country director of the World Lender, signed the loan agreement with respect to their particular sides, said an ERD news release.
The credit amount, to be repaid in 30 years (with 5 years grace period), could have an interest rate of just one 1.25 percent along with 0.75 percent service charge on the outstanding amount.
The release said the federal government recently has laid focus on reform and modernization of some policy strategies and regulations with the involvement of varied ministries, divisions and agencies of the federal government to aid extended job creation, improved job quality, and inclusive usage of jobs for all your Bangladeshi nationals.
In this context, the federal government and the World Bank Group (WBG) have got engaged in a three-year program of reforms for the time 2018-2021, and the World Bank Group (WBG) agreed to extend financial assistance of $750 million in this regard.
The first program in the series (Job DPC-1) was completed in FY 2018-19 where IDA provided $250 million and in its continuity, has decided to provide another $250 million in the next program (Job DPC-2) in today's FY 2019-20.
Under Job DPC Course, the government decided to revise and update some existing legislations and guidelines, reengineering business techniques which eventually donate to improvement of Doing Organization Index of Bangladesh.
Improvement of Doing Business Ranking might facilitate attracting new purchase and so create employment opportunities.
This DPC tranche-2 was because of be produced in FY 2020-2021. So that you can address the adverse impacts of COVID-19, the World Bank (IDA) agreed to frontload this disbursement in FY 2019-2020 on request of the federal government of Bangladesh.
This fund will be used for emergency medical services and for implementing stimulus packages announced by the Prime Minister.
