ADB provides $50m more to help covid-19 affected microenterprises in Bangladesh

The Asian Development Bank (ADB) and Bangladesh government today signed agreements for $50 million in additional loan to help restore the economic activities of microenterprises in Bangladesh, which have been severely affected by the coronavirus pandemic.

The additional loan will scale up the ongoing Microenterprise Development Project (MDP), which ADB approved in 2018 to provide a $50 million credit line to Palli Karma Sahayak Foundation (PKSF), a government development finance and capacity building organization, ADB said in a statement today.

Fatima Yasmin, secretary of Economic Relations Division (ERD) and Manmohan Parkash, country director of ADB remotely signed the loan agreement on behalf of Bangladesh and ADB respectively.

Besides, Mohammad Moinuddin Abdullah, managing director of the PKSF, implementing agency of the MDP, signed the project agreement.

"The assistance will expedite Bangladesh's progress in socio-economic recovery from the losses induced by the Covid-19 pandemic," said Manmohan Parkash.

"The assistance will inject liquidity into the rural economy and help retain businesses and jobs for microenterprises with at least 90,000 jobs protected or created, of which 70% are for women," said Parkash.

"I am glad that the government and the PKSF on ADB's request have reduced the loan on lending rate from the current 24% to a maximum of 18% per year, which will benefit all microenterprises to access financing in cheaper terms, including at least 30,000 Covid-19 affected microenterprises," Parkash added.