ADB lends BD $400m to support economic recovery

[Black_cats]

ADB lends BD $400m to support economic recovery​

FE REPORT | June 14, 2023 00:00:00

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The Asian Development Bank (ADB) will provide US$400 million as loan to facilitate Bangladesh’s reforms in domestic resource mobilisation, improve efficiency and productivity of public spending.

Besides, the assistance also aims to help small businesses, especially women-led businesses, to access low-cost innovative bank financing in the country.
The multilateral lender approved the loan at its headquarters in Manila Tuesday, said an ADB press statement.

The approved loan is ADB’s second subprogramme of the ‘Sustainable Economic Recovery Programme’, which was launched in October 2021 to support economic recovery after the COVID-19 pandemic, it mentioned.

“This subprogramme enables Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement, deepen the reforms of state-owned enterprises, and help small businesses and microentrepreneurs to access low-interest affordable credits from the banking sector,” the release said, quoting ADB Principal Public Management Economist for South Asia Aminur Rahman.

“The subprogramme, with a strong focus on gender, climate change, and digitization, enables the government to strengthen its efforts to support income generation for the poor and vulnerable,” said Mr. Rahman.

According to the press statement, the programme aims to enhance income-tax collection through the adoption of the new Income Tax Act, reduce tax loopholes, strengthen compliance and enforcement measures, and broaden the country’s tax net.

Enhancement of transparency and efficiency in public procurement through strengthening electronic procurement and electronic payment systems is also aimed at, while approval of public projects will be facilitated through the newly launched digital system of public project appraisal and approval process, it added.

The new package supports the Bangladesh Bank’s launch of innovative-financing services through commercial banks to provide low-cost microcredit using digital channels and e-wallet, according to the ADB.

It also facilitates bank lending to marginalised and landless farmers, small traders, and low-income earners, the press release said, adding that micro and small businesses and women entrepreneurs who do not possess land or property will also be able to access finance based on their trade receipts and other forms of nonfixed collaterals, such as small equipment and machinery.

Promoting gender equality and social inclusion and addressing the climate-change agenda in public investment and national budgeting are some of the key activities of this new program, it mentioned.

smjahangirfe@gmail.com

ADB lends BD $400m to support economic recovery

The Asian Development Bank (ADB) will provide US$400 million as loan to facilitate Bangladesh’s reforms in domestic resource mobilisation, improve efficiency and productivity of public spending.Besides, the assistance also aims to help small businesses, especially women-led businesses, to access...

today.thefinancialexpress.com.bd

 

[bluesky]

I have very little idea how this loan can enhance the the productivity of public spending. But, Japan has long experience with this kind of enhancements. Something good will come out for sure that benefits people.