AMN/ WEB DESK
The Asian Development Bank (ADB) on Tuesday approved a USD 400 million loan to Bangladesh to advance reforms in domestic resource mobilisation, improve efficiency and productivity of public spending, and help small businesses, especially women-led businesses to access low-cost innovative bank financing.
This loan is ADB’s second subprogram of the Sustainable Economic Recovery Programme that was launched in October 2021 to support economic recovery after the COVID-19 pandemic.
ADB Principal Public Management Economist for South Asia Aminur Rahman said that the financing will enable Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement. It will also help it in deepening the reforms of state-owned enterprises, and help small businesses and microentrepreneurs to access low-interest affordable credits from the banking sector.
The program will enhance income tax collection through the adoption of the new Income Tax Act, reduce tax loopholes, strengthen compliance and enforcement measures, and broaden the country’s tax net. Transparency and efficiency in public procurement will be enhanced through strengthening electronic procurement and electronic payment systems.
The new package facilitates bank lending to marginalised and landless farmers, small traders, and low-income earners. Micro and small businesses and women entrepreneurs who do not possess land or property will also be able to access finance based on their trade receipts and other forms of non fixed collaterals, such as small equipment and machinery.