WB to provide $250m loans to create employment

Staff Correspondent

23 April, 2021 12:00 AM printer

The World Bank is providing $250 million loans to Bangladesh to help modernise some of its policies and regulations to create employment opportunities for working population.

A loan agreement was signed between the government and the World Bank on Thursday for the Third Programmatic Jobs Development Policy Credit (DPC-III).

The government has taken initiatives to reform and modernise some policies, strategies or regulations that are conducive to the involvement of various ministries, divisions and agencies of the government, including creating adequate and quality employment opportunities and environment for the working population of the country.

The World Bank agreed to provide a total of USD 750.00 million in 'Development Policy Credit (DPC)' loan assistance starting from FY 2018-19 in three consecutive fiscal years to implement the government's initiatives and the proposed reform plan.

Economic Relations Division (ERD) Secretary Fatima Yasmin and the World Bank Country Director Mercy Tembon signed the loan agreement on behalf of the government of Bangladesh and the World Bank, respectively.

The main objectives of this program are: Modernization of investment and business environment; Strengthening the protection of workers and their capability to cope with all kinds of shocks; Development of policies and programs to ensure higher access to employment for the vulnerable population.

As part of this Development Policy Credit (DPC), the World Bank has provided USD 250.00 million in FY 2018-19 under Jobs DPC-I, USD 250.00 million in FY 2019-20 under the Jobs DPC-II, and in continuation, USD 250.00 million will be provided as loan assistance under the Jobs DPC-III.

This loan from the World Bank is repayable in 30 tthirty) years with a grace period of 05 (five) years. The service charge at the rate of 0.75 percent on the disbursed amount and the commitment charge at the rate of 0.50 pecent per annum on the undisbutsed amount have to be paid. The interest rate on the loan is 1.25 percent per annum.