More ‘interest free’ loan for Bangladesh: WB

The World Bank (WB) gave approval for more $200 million ‘interest free’ loans for Bangladesh.

The loan will be given for projects regarding livelihood improvement.

wbBoard of Directors of WB approved the loan at a meeting in Washington on Wednesday.

The loan has to be repaid by the Bangladesh Government by a period of 38 years. Grace period of 6 years starting from the time of handover of the loans was also approved. 0.75% service charge is applied on the loan.

The livelihood improvement project was constructed based on the success of the ‘Social Investment Program’ that started in two of the poorest districts in 2003. It was further extended to 14 more districts.

“The lessons learned from previous programs conducted by the WB will help us in the future applications of projects. The projects will focus on improving livelihoods, quality of lives in vulnerable households in Bangladesh,” said WB’s Country Director of Bangladesh, Johannes Zutt.

The projects also include nutrition awareness and agricultural knowledge distribution and sharing. It will create youth employment opportunities as well.

– Ittefaq Report