The government has signed a new loan agreement of US$ 250 million with the International Development Association (IDA) of the World Bank Group to support the “Second Jobs Development Policy Credit (DPC-2)” program.
Mercy Tembon, country director of the World Bank and Economic Relations Division (ERD) Secretary Fatima Yasmin, signed the loan agreement on behalf of their individual sides.
The loan to be reimbursed in 30 years with 5 years grace period, the loan will have an interest rate of 1.25 percent along with a 0.75 percent service charge on the outstanding amount.
The release stated the government in recent years has laid emphasis on reformation and modernization of some policy strategies and regulations with the involvement of various ministries, divisions, and agencies of the government to support extensive job creation, improved job quality, and inclusive access to jobs for all the Bangladeshi nationals.
In these circumstances, the Bangladesh government and the World Bank will have got involved in a three-year program of reforms for the period 2018-2021, and the World Bank Group (WBG) agreed to extend financial assistance of $750 million in this regard.
The first phase was completed in FY 2018-19 where IDA provided $250 million and in its continuity, has agreed to provide another $250 million in the second program (Job DPC-2) in the current FY 2019-20.
Under Job DPC Program, the government agreed to review and update some current legislations and rules, reengineering business processes that eventually contribute to the improvement of the Doing Business Index of Bangladesh.