WB to extend $200m to create employment

Bangladesh signed an agreement with the World Bank Group’s International Development Association on Wednesday for a $200 million loan to increase economic opportunities for the low-income youth community in urban areas.

It will also help the migrant workers returning from abroad due to Covid-19 pandemic.

The Economic Relations Division (ERD) of the Finance Ministry and IDA signed the agreement in Dhaka.

ERD Secretary Fatima Yasmin and Country Director of World Bank in Bangladesh Mercy Miyang Tembon signed the agreement for their respective sides.

IDA will finance a project titled ‘Recovery and Advancement of Informal Sector Employment Project (RAISE)’.

It will be implemented by Palli Karma Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance and the Wage Earners’ Welfare Board under the Ministry of Expatriates’ Welfare and Overseas Employment.

The project aims to increase the economic opportunities of the low-income youth community in urban areas and the returnee migrants.

Under this programme, the trainees will be provided support to gain skill through on-the-job training, and get loans for business and entrepreneurship development.

This part of the project will be implemented by PKSF at a cost of $150 million.

The social and economic integration of the returnee migrants will be achieved through creating micro entrepreneurs and linkages with different organisations and financial institutions. This will help them access and re-integrate into the local labour market and go abroad again after achieving specific skills 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 IDA Fund.

The proposed loan is repayable in 30 years with a grace period of five years at an interest rate of 1.25 per cent.