Thursday, 9 December, 2021

WB to provide $200m loans for informal job recovery

  • Staff Correspondent
  • 28 October, 2021 12:00 AM
  • Print news
WB to provide $200m loans for informal job recovery

The World Bank will provide $200 million loans to Bangladesh to help implement a project designed for informal sector employment recovery from the Covid crisis.

The government on Wednesday signed a deal with the lender to get the financing from WB’s soft loan window --International Development Association (IDA).

The funds will be utilized in "Recovery and Advancement of Informal Sector Employment Project (RAISE)" being implemented by Palli Karma-Sahayak Foundation (PKSF) and the Wage Eamers' Welfare Board under the ministry of expatriates' welfare and overseas employment.Economic Relations Division (ERD) Secretary Fatima Yasmin and World Bank Country Director Mercy Miyang Tembon signed the loan deal of behalf of their respective sides.

The project has been taken up with the aim of increasing the economic opportunities of the low-income youth community in urban areas and the migrant workers returning from abroad due to COVID-19 pandemic.

The low income urban youth and the youth micro entrepreneurs affected by the COVID-19 will be covered by the Economic Inclusion Programme through training, information sharing and providing loan under the project.

The trainees will be provided support in gaining skill through on-thejob training, and to get loans for business development, entrepreneurship development under this programme.  This part of the project will be implemented by the Palli KarmaSahayak Foundation (PKSF) at a cost of $150.00 million.

The social and economic integration of the returnee migrants will be achieved through creating micro entrepreneurs and creating linkages with different organisations and financial institutions to help them to access and re-integrate in the local labour market, and to re-migrate them in the foreign labour market by achieving specific skill and expertise.

This part of the project will be implemented by the Wage Earners' Welfare Board at a cost of $50 million.  The proposed RAISE project will be funded by $200 million from the World Bank IDA Fund.  The proposed loan is repayable in 30 years with a grace period of 05 years and it bears 1.25 percent interest rate, 0.75 percent service charge.