The European Union (EU) and Germany on Wednesday transferred EUR 33 million or approximately Tk 330 crore to the government of Bangladesh to strengthen key areas of its social security system and build resilience to Covid-19, with a particular focus on the affected workers in export-oriented industries.
This is the second disbursement from the joint EUR 113 million grant made available by the EU and Germany as part of Team Europe’s response to fight Covid-19 and its consequences beyond their own borders too.
Funds are channelled through the budget support programme on National Social Security Strategy reforms in Bangladesh.
EU Ambassador to Bangladesh Rensje Teerink said they encourage the government to ensure appropriate social protection systems and measures that protect those who are in need.
Also read: EU, Germany contribute to strengthen social security in Bangladesh with EUR 80mn
"Beyond the immediate Covid-19 response, this programme represents a concrete first step towards the longer-term objective to establish adequate and sustainable social security for workers addressing different risks."
She said the EU and its Member States are committed to support efforts to establish adequate and sustainable social security for workers, with the shared objectives to protect lives and livelihoods.
German Ambassador Peter Fahrenholtz said they are pleased to join forces with the EU and support the Government of Bangladesh in mitigating the negative effects of the covid-19 pandemic on vulnerable workers in key export sectors like the RMG and leather sectors.
"We hope that the support will reach as many eligible workers as possible and we count on the joint efforts of the Government, the associations and the factories to achieve this.”
Also read: EU contributes to strengthen social security in Bangladesh with EUR 24mn
The programme was designed to run for two years (2020-22).
It provides direct cash transfer allowances (up to 3 months) to unemployed workers who meet the eligibility criteria and whose data is verified/validated as per the guidelines.
The establishment in October 2020 of the Government’s Social Protection Programme for Unemployed and Distressed Workers in the Ready-Made Garment (RMG), Leathergoods and Footwear Industries features as an important response measure.
With this grant, the EU and Germany recognize and support the Government’s commitment to strengthen social security in Bangladesh, along with its commitment to achieve the Sustainable Development Goals (SDGs).