The Asian Development Bank (ADB) today approved a $250 million policy-based loan to support Bangladesh’s economic recovery following the coronavirus disease (COVID-19) pandemic. This is the first subprogram of the programmatic $500 million Sustainable Economic Recovery Program.
The objective of the Sustainable Economic Recovery Program is to facilitate a rapid and sustainable recovery from the COVID-19 pandemic, generate employment, and expand economic activities for micro-entrepreneurs and small businesses. This will be pursued through policy reforms that will create fiscal space to enhance public expenditure and support the recovery and growth of cottage, micro, small, and medium-sized enterprises (CMSMEs).
The loan will support the government’s planned public investment in education, health, social protection, and infrastructure and help to stimulate economic activities and economic recovery. It is also aligned with the core objectives of the country’s Eighth Five-Year Plan and supports the aspiration of Bangladesh to become an upper middle-income country by 2031.