DHAKA, May 7, 2020 (BSS) – The Asian Development Bank (ADB) today approved
an additional $500 million loan to bolster the efforts of Bangladesh to
manage the impact of the novel coronavirus (COVID-19) pandemic on the
country’s economy and public health.
“This package will build on ADB’s ongoing collaboration with Bangladesh on
structural reforms by supporting government efforts to speed up the country’s
social and economic recovery,” said ADB President Masatsugu Asakawa.
“We will work closely with the government and development partners to
mitigate the economic impact of the pandemic on the poor and most vulnerable,
particularly those affected by job losses in small and medium enterprises and
the informal sector.” added the ADB president.
The assistance is part of ADB’s COVID-19 Active Response and Expenditure
Support (CARES) Program, which is funded through the COVID-19 pandemic
response option (CPRO) under ADB’s Countercyclical Support Facility, said an
ADB press release.
CPRO was established as part of ADB’s $20 billion expanded assistance for
developing member countries’ response to the pandemic, which was announced on
13 April.
The release said the loan is expected to benefit over 15 million poor and
vulnerable people in Bangladesh. Around 1.5 million workers, mostly women, in
export-oriented industries will receive extended salary support while
doctors, nurses, and medical workers fighting COVID-19 in government-run
hospitals will receive special honorarium.
The government’s social protection programs for people of old-age and women
in distress will be expanded to cover all eligible senior citizens and women
in the 100 poorest local government units in the country.
At least 2 million poor families across the country will be given about $23
each, while about 1 million poor and vulnerable families will receive food
support of 20 kilograms per month during the pandemic emergency period.
Affected industries and sectors, as well as micro, small, and medium-sized
enterprises are also eligible for loans with subsidized interest.
Implementation of ADB’s COVID-19 response will be supported through a $1
million technical assistance grant to help the government improve its
institutional capacity, and introduce new tools for service delivery, develop
a gender-responsive plan to improve the social safety net, and improve
monitoring and evaluation capacity.
The Asian Infrastructure Investment Bank (AIIB) is planning to provide $250
million in cofinancing with ADB to support the government’s program.
The ADB release said Bangladesh has taken prompt actions to control the
spread of the disease and manage its impact on health, welfare, and the
economy under its COVID-19 response plan.
A social protection and economic stimulus package worth BDT956.19 billion
($11.3 billion, equivalent to 3.3 percent of Bangladesh’s gross domestic
product) has been carried out, consisting of widening the social safety net
coverage, particularly for those engaged in the informal sector, with
emphasis on vulnerable women and groups; salary support to workers in export-
oriented industries; low-interest loans to affected industries and farmers;
and increased government spending to create jobs and increase aggregate
demand.
On 30 April, ADB approved a $100 million concessional loan to support the
government of Bangladesh in its efforts to address the immediate public
health requirements of combating the COVID-19 pandemic.
ADB also released a $350,000 emergency grant for the procurement of medical
supplies and equipment, and $1.3 million from an existing project to provide
one-time cash support to 22,619 trainees to enable them to continue their
ongoing skills training program.