AIIB approves $250m for Bangladesh to fight against COVID-19...

Dhaka, Tuesday   02 June 2020

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AIIB approves $250m for Bangladesh to fight against COVID-19

 Economy Desk

 Published: 05:09 PM, 21 May 2020   Updated: 05:10 PM, 21 May 2020

File Photo

File Photo

Asian Infrastructure Investment Bank (AIIB) has approved a $250 million (Tk 2,120cr around) loan to Bangladesh for extending cooperation to Bangladesh government’s utmost efforts for combating COVID-19.

AIIB approved the loan as a co-financing of a program with Asian Development Bank (ADB), a press release said on Thursday.

The loan is a part of a programme to provide the Bangladesh government with budget support to mitigate the adverse effects of the pandemic on the country's poor and most vulnerable, particularly those affected by job losses in Small and Medium Enterprises(SME) and the informal sector, as well as strengthen social safety nets. The programme also has specific targets to support women in export-oriented industries, according to the release.

According to ADB estimates, a serious outbreak would result in job losses ranging from 1.4 to 3.7 million.

AIIB Vice President (Investment Operations) DJ Pandian said, "Our support to Bangladesh is part of AIIB's broader proactive efforts to respond to the needs of our vulnerable members to weather the COVID-19 crisis." 

Pandian noted that Bangladesh had in recent years performed exceedingly well with annual growth averaging 7.4 percent over the last five years. It is incumbent on the international community to come together to ensure that the country does not fall behind but continues to make strides in its development efforts.