WB approves $476m for two projects

The World Bank (WB) has approved USD 476 million for two projects in Bangladesh to develop strong financial sector and to improve agricultural productivity for one million poor farmers. Of the amount, USD 300 million has been earmarked for the Financial Sector Support Project (FSSP) and USD 176.06 million for the Second National Agricultural Technology Program.
The funds were approved by the bank on June 5 this year.
“These two projects will help Bangladesh to reach the middle-income status by strengthening the financial sector and ensuring greater food security. These, in turn, will create more and better jobs,” said Johannes Zutt, WB country director, Bangladesh.
“Bangladesh has made remarkable progress in reducing poverty during the last few decades. The country has the potential to achieve higher growth if it addresses bottlenecks holding back economic development,” he added.
The Financial Sector Support Project (FSSP) aims to improve the financial market infrastructure, the Bangladesh bank's regulatory and oversight capacity, and access to long-term financing for private firms in Bangladesh.
The 2013 Doing Business report identified access to affordable finance among the top four obstacles for doing business in Bangladesh. The project will enable the participating financial institutions to provide long-term financing to manufacturing and export-intensive firms. The availability of long-term financing up to five years to the private sector and, in particular, to the readymade garments,footwear and light engineering sectors will spur competitiveness, investment and growth.
Financial institutions will lend at commercially determined rates and also offer Shariah-compliant financial products, Zutt said.
“By providing access to long-term financing, the project will help build a market for long-term lending in Bangladesh. It'll also provide technical assistance for capacity building of financial institutions and industry associations.” said Shah Nur Quayyum, task team leader of the FSSP.
The FSSP will help strengthen Bangladesh Bank’s supervisory and oversight functions to mitigate financial sector risks. The project will also strengthen the financial infrastructure, including thepayments system, credit reporting systems and other areas.
The Second National Agricultural Technology Program (NATP II) aims to support a million small and marginal farmers in 57 districts. These farmers will benefit from stronger linkages with research, on-farm demonstrations of improved technologies, training and skills development, agricultural extension services, and co-funding of productive assets.
The project aims to increase and diversify agricultural production. It will ensure the farmers' access to markets. The project seeks to increase the productivity of crops, livestock and fisheries. It will continue to form farmers’ groups. As many as 35 per cent of these groups will consist of women.

WB approves $476m for two projects

The World Bank (WB) has approved USD 476 million for two projects in Bangladesh to develop strong financial sector and to improve agricultural productivity for one million poor farmers. Of the amount, USD 300 million has been earmarked for the Financial Sector Support Project (FSSP) and USD 176.06 million for the Second National Agricultural Technology Program. The funds were approved by the bank on June 5 this year. These two projects will help Bangladesh to reach the middle-income status by strengthening the financial sector and ensuring greater food security. These, in turn, will create more and better jobs, said Johannes Zutt, WB country director, Bangladesh. Bangladesh has made remarkable progress in reducing poverty during the last few decades. The country has the potential to achieve higher growth if it addresses bottlenecks holding back economic development, he added. The Financial Sector Support Project (FSSP) aims to improve the financial market infrastructure, the Bangladesh banks regulatory and oversight capacity, and access to long-term financing for private firms in Bangladesh. The 2013 Doing Business report identified access to affordable finance among the top four obstacles for doing business in Bangladesh. The project will enable the participating financial institutions to provide long-term financing to manufacturing and export-intensive firms. The availability of long-term financing up to five years to the private sector and, in particular, to the readymade garments,footwear and light engineering sectors will spur competitiveness, investment and growth. Financial institutions will lend at commercially determined rates and also offer Shariah-compliant financial products, Zutt said. By providing access to long-term financing, the project will help build a market for long-term lending in Bangladesh. Itll also provide technical assistance for capacity building of financial institutions and industry associations. said Shah Nur Quayyum, task team leader of the FSSP. The FSSP will help strengthen Bangladesh Banks supervisory and oversight functions to mitigate financial sector risks. The project will also strengthen the financial infrastructure, including thepayments system, credit reporting systems and other areas. The Second National Agricultural Technology Program (NATP II) aims to support a million small and marginal farmers in 57 districts. These farmers will benefit from stronger linkages with research, on-farm demonstrations of improved technologies, training and skills development, agricultural extension services, and co-funding of productive assets. The project aims to increase and diversify agricultural production. It will ensure the farmers access to markets. The project seeks to increase the productivity of crops, livestock and fisheries. It will continue to form farmers groups. As many as 35 per cent of these groups will consist of women.