The World Bank is set to provide Bangladesh $250 million as loan to help the recovery of the country’s economy from the adverse effect of Covid-19 pandemic.
To this end, an agreement was signed on Monday between the Economic Relation Division (ERD) and World Bank under the latter’s 'Bangladesh-First Recovery and Resilience Development Policy Credit (DPCI)' programme.
ERD Secretary Fatima Yasmin and Acting Country Director of the World Bank in Bangladesh Mohammad Anis signed the loan agreement on behalf of their respective sides.
To curb the adverse effects of Covid-19, the government has provided stimulus packages to economically affected industries, including the agriculture sector and export-oriented industries, as well as ensuring food security and extending the social safety net programmes.
The WB has agreed to provide the $250 million loan under its DPCI, which will play a key role in sustaining the post-Covid-19 economic recovery.
The DPC series will provide $500 million in two consecutive fiscal years (FY22 and FY23), says a report on UNB agency. The remaining objectives of the DPC are to assist Bangladesh in its efforts to implement budget stimulus for subsequent recovery of Covid-19 and to enhance resilience to future shocks.
The interest rate of the above-mentioned loan is 1.25 per cent, and the service charge at the rate of 0.75 per cent, and this loan has to be repaid in 30 years with a grace period of five years.