EU to provide Bangladesh another €100m

The European Union (EU) will provide additional €100 million for ongoing national social security and safety net programme jointly being implemented by the cabinet ministry and the finance ministry.

Earlier in 2019, the EU signed an agreement to provide €252 million (€247 million as budgetary support and €5 million for supplementary support) for the programme, National Social Security Strategy (NSSS) Reform of Bangladesh.

Now, with the latest addition, the total support for the programme rises to €352 million. The European Union has already provided €139 as budgetary support to support the reform activities of the NSSS. Among the €100 million support loan, €97 million would be provided as budgetary support and €3 million as supplementary support for the programme.

The €100 topping-up related addendum financing agreement (AFA) was signed by Secretary of Economic Relations Division (ERD) Sharifa Khan and European Union Director for Middle East, Asia and Pacific, Peteris Ustubs on September 15. The programme implementation period is from November 2020 to June 30, 2025. The cabinet approved the “National Social Security Strategy (NSSS) of Bangladesh” on June 1, 2015.  

The main purpose of the additional assistance is to increase investment in human resource development. It has a specific focus on establishing a comprehensive, effective and risk-free social security system. Another important target of the project is to ensure food security for mother and children.

Notable, budget support is a means of delivering effective aid and durable results for achieving the Sustainable Development Goals (SDGs).  Budget support is directly linked to reforms and developmental results.

This ensures development of effective systems to collect information on results, to monitor progress, and evaluate impact, based on which the sectoral reform process is funded.