AfDB grants $ 250 million loan for economic recovery
The Asian Development Bank (AfDB) has approved a $ 250 million loan to support Bangladesh’s economic recovery from the Covid-induced pandemic.
This is the first sub-program of the $ 500 million programmatic program for sustainable economic recovery, the AfDB said in a statement yesterday.
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The aim of the program is to facilitate a rapid and sustainable recovery from the Covid-19 pandemic, generate jobs and expand economic activities for micro-entrepreneurs and small businesses, he said.
“This will be pursued through policy reforms that will create fiscal space to increase public spending and support the recovery and growth of small businesses, micro, small and medium enterprises (SMMEs). “
The loan will also support planned public investments by the government in education, health, social protection and infrastructure and help stimulate economic activities and economic recovery.
“The fiscal space created under the program will allow the government to prioritize spending and large-scale investments in social and economic infrastructure,” said Srinivasan Janardanam, AfDB’s senior financial management specialist.
“The program is expected to increase the efficiency of public investment management and create an enabling environment for access to credit, especially for the poor and vulnerable.
To promote fiscal sustainability, the program will help the government overcome some key constraints to public investment in critical physical and social infrastructure, the AfDB said.