Dhaka, April 18 (UNB)-The World Bank provides USD $ 250 million for the recovery and resilience of the economy from the adverse impact of Covid-19 pandemic.

A loan agreement of $250 million signed on Monday between the Economic Relation Division (ERD) and World Bank under the ‘Bangladesh-First Recovery and Resilience Development Policy Credit (DPCI)’.

ERD Secretary Fatima Yasmin and Mohammad Anis, acting country director of the World Bank in Bnagladesh signed the loan agreement on behalf of their respective sides.

In response to the adverse effects of Covid-19, the government has provided stimulus incentives to economically affected industries, agriculture sector and export-oriented Industries and to ensure food security, the government extended the social safety net programs and employment creation.

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The WB has agreed to provide $250 million as Budget Support, titled `Bangladesh-First Recovery and Resilience Development Policy Credit (DPC1)', which will play a key role in sustaining the post Covid-19 economic recovery and development momentum.

The DPC series will provide $500 million in two consecutive Fiscal Years 2021-22 and 2022-23. The remaining objectives of the DPC are to assist Bangladesh in its efforts to implement budget stimulus for the subsequent recovery of Covid-19 and to enhance resilience to future shocks.

The interest rate of the above-mentioned loan is 1.25 percent, and the service charge at the rate of 0.75 percent, and this loan has to be repaid in 30 years with a grace period of 5 years.

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