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The World Bank will provide US$245 million worth of loans for modernising Bangladesh’s social safety-net programmes for improving equity, efficiency and transparency of the state services.
The Washington-based lender signed a loan agreement with the government in Dhaka on Tuesday to this regard.
Economic Relations Division Secretary Kazi Shofiqul Azam and World Bank Country Director in Bangladesh Mr Qimiao Fan signed the agreement.
WB in a statement said the $245 million additional financing to the Safety Net Systems for the Poorest Project will help improve beneficiary targeting, information management, and benefit payment of the country’s five large safety net programmes.
These are: the Employment Generation programme for the Poorest, Work for Money, Test Relief, Vulnerable Group Feeding, and Gratuitous Relief. Implemented by the Department of Disaster Management, these programmes collectively reach over nine million poor and vulnerable households.
The credit is from the International Development Association (IDA), the World Bank’s concessional lending arm. The interest of the credits will be 0.75 per cent and repayable in 38 years, including a 6-year grace period.