WB okays $200m loan to help 5m rural poor

FE Report | Published: March 20, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

The World Bank (WB) board has approved US$200 million 'soft' loan, to be utilised to improve livelihoods of nearly 5.0 million poor people in rural Bangladesh through upgrading infrastructure and agricultural product marketing facilities.
The WB Dhaka office in a statement on Thursday said the bank's board at a meeting on Wednesday endorsed the concessional loan for Bangladesh.
An Economic Relations Division (ERD) official said as the loan has been approved by WB, now they will go for confirming the fund by signing a credit deal shortly.
The Washington-based lender will bankroll the 'Notun Jibon Livelihood Improvement Project', which will benefit rural poor in the poorest upazilas in 21 districts.
The government officials said the project will empower rural communities by providing support for livelihoods and access to market through business partnerships. It will also offer funding for small rural infrastructures.
The project will mobilise the poor and extreme poor people, who often remain out of the purview of micro-credit schemes, by building and strengthening community institutions, including 'Notun Jibon Community Societies'.
It will also raise nutrition awareness, share agricultural knowledge, and continue focusing on creating youth employment opportunities.
"Bangladesh has made remarkable progress in reducing poverty. Sixteen million people came out of poverty in the last decade. Still poverty remains a daunting development challenge, with around 47 million poor people, most of whom live in rural areas," said WB Country Director in Bangladesh Johannes Zutt.
The project will cover around 2,500 new villages in 12 districts in addition to around 3,200 villages, supported under the Social Investment Program Project-II.
The $200 million loan will be provided by the International Development Association (IDA), WB's concessional lending arm, with 38 years maturity period as well as 6 years grace period, and a service charge of 0.75 percent.
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