ADB signs $50mn loan deal on microenterprise dev tomorrow

5 February, 2019 12:00 AM printer

The Asian Development Bank (ADB) will provide US$50 million loan to promote microenterprise development in Bangladesh through a credit line to Palli Karma Sahayak Foundation (PKSF) and its partner microfinance institutions.

“In this regard, the loan agreement between the government and the Asian Development Bank (ADB) will be signed on Wednesday at 10am at the NEC-2 Conference Room in the city’s Sher-e-Bangla Nagar area,” said an Economic Relations Division (ERD) official.

The official told BSS that ERD Secretary Monowar Ahmed and ADB Country Director Manmohan Parkash will sign the agreement on behalf of their respective sides. Besides, another project agreement will also be signed by the ADB and PKSF, a development finance organisation.

According to the ERD and the ADB, the project will help PKSF to develop a financing strategy and carry out institutional strengthening. For the longer term, the project will develop microenterprise finance operational guidelines for microfinance institutions, including piloting for some partner organisations, through a mobile-based financing application. It will also assist in clustering microenterprises for business expansion and up-scaling with quality control, branding, packaging and marketing. Out of the total project cost of US$62.5 million, which is due for completion at the end of 2020, the microenterprises will contribute US$12.5 million.