ADB has granted Bangladesh a $400 million loan to facilitate reforms in domestic resource mobilization and enhance the efficiency and productivity of public spending.
The loan will also assist small businesses, particularly women-led, in accessing affordable and innovative bank financing.
The funding is part of the ADB’s Sustainable Economic Recovery Program, initiated in October 2021 to aid in the country’s economic recovery post the Covid-19 pandemic.
According to Aminur Rahman, the ADB Principal Public Management Economist for South Asia, this subprogram will allow Bangladesh to strengthen its revenue generation, promote transparency and efficiency in public spending and procurement, and further reform state-owned enterprises.
It will support small businesses and microentrepreneurs by facilitating their access to low-interest credits from the banking sector.
This focus will enable the government to intensify its efforts to generate income opportunities for society’s poor and vulnerable segments.
The loan aims to address key challenges faced by Bangladesh in its economic development and recovery process.
By implementing reforms in resource mobilization and public expenditure, the country can enhance its fiscal sustainability and ensure more effective utilization of public funds.
Supporting small businesses, particularly women-led, the loan aims to foster inclusive economic growth and empower marginalized groups.
This financial assistance from the ADB is expected to contribute significantly to Bangladesh’s ongoing efforts to build a resilient and sustainable economy while addressing the specific needs of different sectors and promoting equitable development.
