IFC
IFC fosters climate action with a focus on sustainable, inclusive growth in South Asia
To help sustain and create jobs, improve services for people and protect small and medium sized enterprises, IFC committed about $2 billion in the South Asian region in the past fiscal year, ending June 2022, with a key focus on helping countries recover from the impacts of COVID-19.
The release of the figures comes as Ruth Horowitz assumes the role of IFC’s Regional Vice President for Asia and the Pacific – covering both South and East Asia as well as the Pacific – taking over from Alfonso Garcia Mora, who is now IFC’s Regional Vice President for Europe, Latin America and the Caribbean.
“I am very excited to join the region and to work closely with its fantastic staff, clients and stakeholders, and look forward to building on the region’s strong history of impactful private sector engagements”, said Ruth Horowitz, IFC’s Vice President for Asia and the Pacific, on Monday.
Horowitz is a global investment professional with over 30 years of experience.
Most recently, she served as the Vice President of IFC’s Equity Mobilization Division – IFC Asset Management Company (AMC), which has raised over $10 billion from investors across 13 funds.
Prior to joining IFC as the Chief Operating Officer and Director of AMC, Horowitz worked for Lehman Brothers.
With the impacts of the COVID-19 pandemic continuing to linger, IFC again stepped up with crucial financial support aimed at helping the region rebuild.
Read: IFC blames flood disaster on unplanned development Bangladesh and India’s Meghalaya, Assam
IFC delivered $237 million in FY22 in long-term finance in COVID-response deals on top of its short-term finance to help local exporters and importers, including contributing to increased food and commodities trade.
Overall, from FY20 to FY22, IFC has committed over $1 billion as part of its COVID-19 response in the region.
“With about $2 billion committed in the South Asia region in the past year, IFC’s work has enabled the private sector to deliver solutions to help people and businesses weather multiple challenges,” said IFC’s Regional Director for South Asia, Hector Gomez Ang.
“The innovation and expertise of the private sector is needed now more than ever as countries build the pathways to a resilient, sustainable future.”
As with other regions, South Asia remains vulnerable to the impacts of a warming planet, conflict and geopolitical tensions, and rising global inflation.
As Vice President for Asia and the Pacific, Horowitz signaled that helping countries achieve their climate goals, while meeting needs for renewable energy and sustainable infrastructure will be among key priorities going forward.
"Already soaring food, energy, and fertilizer prices, exacerbated by both the war in Ukraine and erratic weather events are threatening to reverse decades of development gains, making the task ahead even more urgent," said Horowitz.
“However, the right mix of private sector innovation, public sector policy, and availability of financing can not only boost South Asia’s resilience to future shocks but also help transform the region for the better.”
“The threat the region faces in terms of the climate crisis is profound but there are also immense opportunities, underscored by the trillions of dollars in capital that’s waiting to be deployed in green investments.
IFC is uniquely placed to work with the private sector to identify solutions that not only help decarbonize economies but also meet the pressing development challenges facing this region. I look forward to strengthening and developing new partnerships in taking on this exciting role across the Asia Pacific region.”
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IFC, BRAC Bank to launch Bangladesh’s first ever housing bond
Thousands of low and middle-income urban and rural families in Bangladesh are expected to be able to take out affordable housing loans through IFC’s investment in the country’s first housing bond to be issued by BRAC Bank.
In a first for the country, IFC will make a subscription of up to $50 million-equivalent Bangladeshi taka (BDT) denominated, five-year senior bond by BRAC Bank to fund and expand its affordable housing finance program.
Through this initiative, IFC and BRAC Bank jointly aim to demonstrate a commercially viable lending product that caters to the housing finance needs of households belonging to low and middle-income household, promote inclusive development and create thousands of new jobs.
Read: Meta partners with BRAC to empower Bangladeshi women, youth online
The move is expected to create thousands of new jobs in construction and related industries, according to International Finance Corporation (IFC).
It is estimated about 80 percent of people in Bangladesh’s cities live in rented properties all their lives, mostly due to lack of mortgage finance.
Home mortgages only account for three percent of the loan market in Bangladesh, below the average of 4.9 percent in South Asia and 8.9 percent in emerging markets.
Read: UNDP to work with BRAC for accelerating pace of poverty reduction
Most financial institutions focus on providing housing finance to the higher-income people, while access to formal housing loans for low and middle-income segments is very limited.
This causes a surplus in premium housing and a shortage of both housing finance and housing units for low and middle-income people.
“This marks a whole new strategic priority for BRAC Bank, since our establishment in 2001, with our goal then to improve access to finance for underserved small and medium enterprises. We, along with IFC, recognize that far too many low and middle-income earners simply cannot access the funds they need to buy a home. Now people of semi urban areas can also fulfill their dream of owning a house with our affordable home mortgage facilities,” said Selim R. F. Hussain, BRAC Bank Managing Director and CEO.
Read IFC blames flood disaster on unplanned development Bangladesh and India’s Meghalaya, Assam
As an investor in the first ever privately placed housing bond issuance in Bangladesh, IFC will help deepen the country’s long term bond market which remains underdeveloped.
The project was supported by the Joint Capital Markets Program (J-CAP), a World Bank Group initiative to develop debt capital markets.
IFC’s work upstream with J-CAP efforts involved supporting BRAC Bank in structuring and laying the groundwork for the first ever housing finance bond in Bangladesh.
Read Take initiative for basin-wide management of all rivers including Teesta: IFC
The investment is also supported by the local currency facility of the International Development Association’s Private Sector Window through a US dollar/BDT cross-currency swap to facilitate local currency lending.
“This innovative deal marks an important milestone in the development of the domestic long-term bond market and offers multiple benefits for Bangladesh, with first and foremost helping to tackle the acute need of low and middle-income people to obtain affordable housing finance.
It is also the first time that a foreign investor plans to invest in an onshore local currency bond to be issued by a local private institution to finance housing. It then demonstrates opportunities for new foreign and local investors to invest in such thematic bonds in the domestic corporate bond market,” said Allen Forlemu, IFC Regional Industry Director, Financial Institutions Group, Asia and Pacific.
Read IFC to increase investments in Bangladesh in next 5 yrs
Take initiative for basin-wide management of all rivers including Teesta: IFC
The International Farakka Committee (IFC) has urged the government and all others concerned to initiate the process of ensuring basin-wide integrated management of all rivers including the Ganges and the Teesta.Welcoming Prime Minister Sheikh Hasina’s recent statement for basinwide management of rivers, the leaders of the IFC said that only such management will keep rivers alive for all people on their banks to benefit from their services.IFC issued a joint statement on Sunday marking the 46th anniversary of the Farakka Long March.On May 16, 1976, leader of toiling masses Maulana Abdul Hamid Khan Bhashani led the historic long march towards the Farakka Barrage from the Rajshahi Madrasah ground and crossed more than 100 kilometres on foot.
Also read: Momen hopeful of early signing of Teesta; India looks forward to Hasina’s visitThe march was the first successful popular protest against unilateral diversion of the Ganges and for maintaining its natural flow.The IFC leaders said that the long march proved relevant as the Indian state of Bihar and many Indian water experts have called for demolition of the Farakka Barrage.Indian water experts have raised voices against structures on rivers including Cauvery, Sabarmati and Ganges that have led to drying up of these natural systems.Rivers can remain alive only if they to flow from their origins to the sea, the IFC leaders said.
Also read: Scope still there for cooperation on Teesta water allocation: Prof ImtiazThe signatories to the statement were: IFC New York Chairman, Atiqur Rahman Salu, Secretary General, Sayed Tipu Sultan; IFC Bangladesh President, Prof. Jasim Uddin Ahmad, Senior Vice President, Dr. SI Khan, General Secretary, Syed Irfanul Bari, and IFC Coordinator, Mostafa Kamal Majumder.
IFC appoints Holtmann as country manager for Bangladesh, 2 other countries
International Finance Corporation (IFC) has appointed Martin Holtmann as the new Country Manager for Bangladesh, Bhutan, and Nepal.
According to release of IFC, a member of the World Bank Group, Holtmann, based in Dhaka, will focus on developing new opportunities for private sector investments and increasing the financing agency’s impact investments as the region recovers from the impacts of COVID-19.
Holtmann, a German national, joined IFC in 2007.
Prior to his appointment, Holtmann was Global Sector Manager for Financial Inclusion, helping IFC to reach millions of micro, small and medium sized enterprises (MSMEs) with traditional and digital financial services and strengthen more than 200 partner institutions through investment and advisory support.
READ: Credit guarantee scheme: IFC, Bangladesh Bank sign deal to support Covid-hit small businesses
“Martin’s background experience will be invaluable as IFC deepens its work in Bangladesh, Bhutan and Nepal,” said Hector Gomez Ang, IFC’s Regional Director for South Asia.
“This is a time of new challenges and opportunities and I am confident Martin will be successful in leading IFC’s efforts to strengthen and diversify its work in the three countries in support of a green and resilient recovery.”
Holtmann will work to promote IFC’s impact on climate, gender, and green growth, as well as build country portfolios and diversify investments in the private sector.
Some key sectors for future investment opportunities in the region include transport and logistics, clean energy, financial services, tourism, agribusiness, healthcare, and housing.
Commenting on his new role, Holtmann said, "I am very pleased to be working in Bangladesh, Nepal and Bhutan. These countries have shown remarkable resilience in the face of strong economic headwinds and fiscal pressures and I look forward to redoubling IFC efforts to create markets and promote sustainable development."
Holtmann is a graduate of the Lester B. Pearson United World College of the Pacific, Canada and holds two master’s degrees in Economics from Trier University, Germany and in Public Administration from Harvard University, United States.
He succeeds Wendy Werner, who has taken on a new role as IFC’s Country Head in India, after successfully serving as the Bangladesh, Bhutan and Nepal Country Manager for six years.
Before joining IFC, Holtmann worked as Lead Financial Specialist at the Consultative Group to Assist the Poor (CGAP) in the World Bank, and as managing director of a consulting firm in the private sector. He is also one of the core authors of the 2022 World Development Report, “Financing for an Equitable Recovery”.
READ: IFC, institutional investors embark on new multi-billion climate finance initiative
Since 2000, IFC has invested nearly $8 billion to help private sector growth in Bangladesh, Bhutan, and Nepal.
Since the beginning of the COVID-19 pandemic in 2020, IFC has provided a total of $270 million in working capital solutions to banks and liquidity support to companies.
These investments are helping keep businesses afloat, resume exports, and preserve jobs, and which are critical to sustaining national economies, said the IFC release.
Move to implement Teesta plan with Chinese support a timely step: Farakka Committee
Leaders of the International Farakka Committee (IFC) have extended their support to the government’s initiative to implement the Teesta Master Plan with Chinese support, saying it is a proper and timely move.
Expressing their grave concerns over the recent flooding, the IFC said an untimely flood disaster along the Teesta in Bangladesh has caused extensive damages to the property of lakhs of people along its two banks.
Thousands of dwelling houses and homesteads have been washed away with riverbank erosion. Standing crops on lakhs of acres of land have been damaged while roads and embankments have been eroded snapping road-links among the districts of the greater Rangpur region.
“In this context, we consider the initiative taken by the government to implement a Teesta master plan with the help of China is a proper and timely one,” the statement said.
“Although this project is no substitute for keeping the river alive by ensuring its natural flow, it’s expected to help reduce the damages caused by floods and help improve the lot of the people of the region through coordinated development activities. The river will get a new life when time will come to restore its natural flow,” it said.
Read: Implement the Teesta Project with cooperation of China: Intl Farakka Committee
The committee said the disaster has been caused by the discharge of floodwater through the Gajoldoba Barrage floodgates following excessive rainfall along the upper catchment of the Teesta in Sikkim.
Embankments at about 17 places in the upper Teesta were damaged by the floods. But the Bangladesh authorities were not alerted before releasing the water. Only two weeks before, the Teesta in Bangladesh was a dry barren land as all water was diverted from Gajoldoba Barrage in West Bengal, added the statement.
The Teesta River in Bangladesh is a dead river during the dry season. Despite repeated assurances, no treaty has been signed for the management of the river’s water. People now can walk on foot from one bank of the river to the other, according to the statement.
Only seepage from the Gajal Doba barrage flows into Bangladesh. During the monsoon, the river causes disastrous floods, the statement pointed out.
According to one account, five waves of flood came down the Teesta in 2021 but a disastrous flood as late as October was never experienced before.
The statement said last week’s flood disaster has caused extensive losses to at least 80,000 families, according to a preliminary estimate. The damaged property include ripe paddy, onion, garlic, maize, animal fodder, homesteads, clothes, preserved winter garment and household crockery and utensils.
Read: Flood: Farakka Committee blasts India’s upstream management of common rivers
Bangladesh must do something to pull out three crore people of the Teesta basin from this helpless situation, protect their lives and property and maintain its environmental balance. Bangladesh cannot sit idle in the face of people’s miseries, the statement added.
The committee leaders suggest the Teesta Master Plan can be expanded to cover other rivers – Atrai, Korotoa and Punarbhaba, including Chalan Beel which lie in the old Teesta Basin – to ensure overall socio-economic development of the Northwestern region of Bangladesh. This will help recharge groundwater and keep all the tube-wells functional throughout the year.
The signatories to the statement were – Atiqur Rahman Salu, chairman, Sayed Tipu Sultan, secretary general, IFC, New York; Prof. Jasim Uddin Ahmad, President, Dr. SI Khan, Senior Vice-President, Syed Irfanul Bari, general secretary of IFC Bangladesh and Mostafa Kamal Majumder, coordinator of IFC.
IFC inks deal with BFIU to develop eKYC infrastructure for fast-tracking financial Inclusion
To create a secure digital banking environment and to accelerate financial inclusion, IFC has signed a cooperation agreement with Bangladesh Financial Intelligence Unit (BFIU) for implementing an Electronic Know Your Customer (eKYC) project in Bangladesh, where only half the adult population has access to a formal financial system.BFIU, an independent government agency tasked with investigating suspicious transactions and money laundering, is also the central agency for ensuring KYC/eKYC compliance.Under the agreement, IFC and BFIU will work together to develop and adapt eKYC infrastructure, which is a foundational regulatory arrangement for conducting customer due diligence during new client on boarding process for collecting and verifying customer data electronically during opening of new accounts at banks, non-bank financial institutions, mobile financial service providers, insurance companies, and capital market intermediaries, said a press release of Bangladesh Bank.
Also read: IFC provides liquidity succour to Covid-hit RMG sector
According to central bank, an efficient digital on boarding infrastructure is one of the major building blocks for fast-tracking financial inclusion in Bangladesh.Under the current KYC protocol for opening new accounts, customers need to present their national identity (NID) cards in person and financial institutions (FI) must authenticate and keep a record manually photocopying and printing the NID.The process is time-consuming, costly, and inconvenient for both clients and FIs. Moreover, in-person account opening has become more difficult amid the COVID-19 pandemic and the development of eKYC will help in social distancing.Once in place, the eKYC infrastructure will not only cut time and cost of client on boarding, but it will help reach more customers digitally, thus, reducing the number of unbanked people, particularly the underserved such as small business owners and women entrepreneurs.The project will contribute to the financial inclusion agenda of the government of Bangladesh as well as IFC’s target of including an additional 30 million unbanked adults in the country by 2030.BFIU is expected to issue a comprehensive eKYC regulatory guideline for the financial sector by December 2024.Along with establishing a regulatory infrastructure, the eKYC project will also deliver data analytics, case studies, knowledge creation and dissemination and awareness building in the financial market. IFC estimates that 500,000 people will be covered by the e-KYC system by end of the project implementation period in 2025.“Financial sector especially financial institutions are experiencing a drastic process of digitalization.This digital transformation enables easy access of customer, even from the remote location, into the financial services.
Also read: Kamal seeks soft IFC loan for private sector development
This may pose some underlying risk of money laundering, terrorism financing and related criminal activities by abusing financial institutions and its services.To minimize such risk of financial sector e-KYC can be one of the most optimal solutions” said Md. Masud Biswas, Executive Director & Deputy Head of BFIU.“Promoting financial inclusion is one of the priorities for IFC’s work in Bangladesh. The implementation of eKYC infrastructure will offer seamless experience for end users and support the financial sector to reach out to last mile customers in Bangladesh, significantly increasing access to financial services”, said Qamar Saleem, IFC's Regional Manager Advisory Services for Financial Institutions Group in Asia and Pacific.IFC helps advance financial inclusion through investments in the financial sector, advisory services to investment clients and other private sector clients, and through advisory services to stakeholders in financial infrastructure.Earlier, for conversion from manual KYC to eKYC, BFIU ran a small-scale testing by opening 1,500 accounts using eKYC technology, such as biometrics, and the results confirmed its effectiveness.
Truck Lagbe raises $4 mln Series A fund to transform trucking market of Bangladesh
Truck Lagbe, a trucking platform in Bangladesh, raised a $4 million Series A financing round led by International Finance Corprotation (IFC) and co-led by IDLC Venture Capital Fund I.
Other participants in the round included Millville Opportunities Master Fund, Shorooq Partners, Colopl Next, and TRU Fund I.
Truck Lagbe connects businesses with truck drivers and fleet owners through an app-based platform.
Read Truck Lagbe: Story of a Successful Digital Trucking Startup in Bangladesh
Over 80,000 truck owners and drivers are registered on the platform serving thousands of customers daily.
The company operates an on-demand marketplace serving SMEs and consumers, and a brokerage serving larger companies on credit. The company will utilize the capital to expand the team, acquire drivers, expand presence in new districts, and introduce value-added services.
“We are thrilled to have IFC lead our Series A,” says Truck Lagbe CEO and founder Anayet Rashid.
“IFC have backed several of the leading trucking platforms globally, bringing deep knowledge, expertise, and network. They are the ideal partner for our next phase of growth.”
Read Best Fire Truck Rescue, Fire Fighter Simulator Games for Android, iOS
“Trucking is a huge market in any country. Everything around you was on a truck at some point, and often several times. If we can optimize logistics through technology, we can save billions of dollars for consumers and businesses, and increase earnings for drivers,” says Rashid.
“Our vision is to build a one-stop solution for the trucking industry where users can source trips through the platform, purchase trucking accessories and services, purchase fuel, send payments, or receive financing to expand their fleet. A single click will move anything.”
“It is crucial for Bangladesh, which aims to become a middle-income country over the next decade, to have an efficient transport infrastructure and logistics services, which not only provides more support for the shipment of goods during the pandemic, but can also help transport exports to markets,” said Nuzhat Anwar, IFC’s Acting Country Manager for Bangladesh, Bhutan and Nepal.
Read Top 7 Truck Rental Apps in Bangladesh
“In addition to its financing, IFC is providing the company with knowledge and innovative support by leveraging insights from previous investments and will be connecting Truck Lagbe to more prospective clients.”
“Bangladesh’s logistics industry is transforming from manual to digital. Being in the banking industry over two decades, I have personally seen the growth of the logistics businesses and the crucial role it plays to keep the economic engine of our country thrive. So, we are extremely happy with this investment and to support the team as it directly impacts our GDP growth,” said Syed Javed Noor, Deputy Managing Director at IDLC and Partner at IDLC Venture Capital Fund I.
Truck Lagbe was founded in July 2017 by Anayet Rashid and Mir Hossain Ekram where customers booked trucks through a call center. It won the “Startup Challenge 2017” competition in 2017, organized by the Information and Communication Technology Division of the government of Bangladesh.
Read Uber Adds Auto-Rickshaws in Dhaka: Transportation Aggregation and Competition
The company launched their app in September 2018, and raised a seed round led by Ravid Chowdhury, the former CFO of the Bangladeshi ride-hailing company Pathao. Other early investors include Betatron Venture Group, Seedstars, Mount Parker Ventures, Aria Group, Falcon Network, and Development Finance Asia.
Bangladesh has potential to become $800bn economy by 2030: Experts
Bangladesh urgently needs to go for a fresh round of reforms to strengthen the private sector to tap its economic potentials and accelerate the export-led growth, said a report on Wednesday.
The report titled ‘Bangladesh Country Private Sector Diagnostic (CPSD), prepared by IFC and the World Bank, also said Bangladesh’s post–Covid recovery will force a reimagining of its developmental model, highlighting the importance of the private sector and making the reform agenda even more urgent.
Taking part in the virtual report-launching event, experts said Bangladesh has the potential of becoming an economy of $800 billion by 2030 from the current $300-billion one if proper steps are taken to diversify its export basket and ensure the ease of doing business through necessary reforms.
Launching the report, Prime Minister's Private Industry and Investment Affairs Adviser Salman F Rahman said the diversification of export is very important, though the country has been facing challenges in this regard. “Our dependence on the RMG has been highlighted for a long time that we need to diversify our exports …diversification should be our priority now.”
He said the RMG sector has got tremendous support from the government for its expansion, but similar support has not been given to other areas, and this is something the government is now seriously looking at. “What we really need to do is to identify the reasons for which the garment sector has been so successful and we can apply the same principles to the other sectors.”
Also read: Covid-19 affected 60 million-plus domestic workers in informal economy: ILO
Salman said protectionism for the domestic industry is necessary since the country is going to graduate to a middle-income one. “The pharmaceutical industry which has been identified as a real growth sector since it has got that protectionism.
“Bangladesh had a positive GDP growth rate last year despite the adverse impact of the Covid-19 pandemic and it was the only country in South Asia which did not experience a recession. We’ve prepared the Eighth Five Year Plan keeping all the challenges of the pandemic in mind,” he said.
The PM’s adviser said the CPSD recommendations are well aligned with the priorities of the government’s Eighth Five Year plan for setting a trajectory towards a prosperous Bangladesh by 2041.
As the country is aspiring to achieve double-digit growth, Salman said, the government has taken various steps, including developing the infrastructure, increasing foreign direct investment and creating an investment-friendly climate.
He said the economic zones and mega connectivity projects like Matarbari Port and Padma Bridge that are now under construction will be the gamechangers in the coming years.
He said the agro-processing industry is making good progress and it will be another gamechanger for Bangladesh.
Also read: Govt. goes for more consumption and investment to recover economy from pandemic loss
Mamun Rashid, Managing Partner, PricewaterhouseCoopers Bangladesh Private Limited, said the report has focused on the private sector capacity building as well as the government’s capacity building.
“When we’re talking about reforms and strengthening capacity building, I try to draw your attention towards the capacity building of our private sector, efficiency improvement of our private sector as well as improving the overall balance sheet of the private sector,” he said.
IFC’s Vice President (Asia and Pacific), Alfonso Garcia Mora said the need for reforms will become even more compelling for Bangladesh to overcome the fallouts of the Covid-19 pandemic. “Finding new sources of income and growth will be an urgent priority.”
He also said the private sector, which already accounts for more than 70 percent of all investment in Bangladesh, supported by a strong financial sector, will need to play an important role in spurring the recovery so the country can grow, export and create quality jobs.
IFC Country Manager Wendy Werner said it is clear the private sector has an important role to play to meet the rising demand for quality healthcare and improving the efficiency of delivering health services, as health financing in the country is low compared to others at a similar level of development.
“Bangladesh could also target high-end markets and introduce new technology in the readymade garment sector, and seize opportunities in footwear, leather electrical goods, and agribusiness exports,” she observed.
Also read: Budget document: Preparations under way to face the challenges of developing economy
World Bank’s Country Director Mercy Tembon said readymade garments have contributed significantly to Bangladesh’s economic growth. “For a more resilient, inclusive and sustainable growth, Bangladesh will need to diversify its export basket and develop a robust and sophisticated private sector, relevant in the post–Covid recovery phase when public resources will be needed most in the social sectors.”
The report says key priority areas for the reform agenda include creating a favourable trade and investment environment for domestic and foreign investors, modernising and expanding the financial sector and removing impediments for developing infrastructure.
“Transport and logistics, energy, financial services, light manufacturing, agribusiness, healthcare and pharmaceuticals sectors are among those with the strongest potential for private investment that could play a significant role in boosting economic growth,” the report observes.
Farakka Long March still relevant in Bangladesh: IFC
Recalling the historic Farakka Long March Day, the International Farakka Committee (IFC) on Sunday urged Dhaka and Delhi to sign a treaty to keep 54 common rivers flowing through the two countries from their sources to the sea.
Diversion of water by constructing dams for short-term benefits is killing the natural water sources, it said in a statement.
May 16 marks the Farakka Long March Day. On this day in 1976, Moulana Abdul Hamid Khan Bhashani led the march from Rajshahi towards Farakka Barrage on the Gages as unilateral diversion of water rendered lower-riparian Bangladesh part of the river dry.
The barrage was commissioned for a period of 41 days from April 21 to May 31 in 1975. But the diversion of water was continued unilaterally, causing huge damages to the ecology in Bangladesh. One year after the long march, the 1977 Ganges Water Sharing Treaty was signed with an 80 percent guarantee clause for five years.
Also read: Farakka Long-March Day observed
The second treaty on Ganges water sharing was signed in 1996 for a period of 30 years but Bangladesh is not getting water as per its terms. Unilateral water diversion by constructing dams and barrages from other common rivers, including Teesta, has increased over the years. Thus the Farakka Long March of Moulana Bhashani remains relevant even today, the IFC said.
IFC organised a long march to the Brahmaputra in Chilmari in 2005 and held a big rally of nearly one million people and drew attention to the plight of the Teesta River that was rendered dry.
In the following year on the 30th anniversary of the historic Farakka Long March, IFC organised a grand rally at Gobindadashi adjacent to the shoal of the Jamuna River in Bhuapur under Tangail.
Bangladesh owes her origins to rivers which thus form a question of her life and death, the statement noted.
The signatories to the statement are – Atiqur Rahman Salu, Chairman and Sayed Tipu Sultan, Secretary General, IFC New York; Prof. Jasim Uddin Ahmad, President, Dr. SI Khan, Senior Vice-Presient and Syed Irfanul Bari, General Secretary, IFC Bangladesh; and Mostafa Kamal Majumder, Coordinator of IFC.
$30m IFC loan to help Bangladesh cos stay afloat amid Covid
Industries hit hard due to the onslaught of the pandemic are all set to benefit from a $30 million World Bank loan to Bangladesh's BRAC Bank.
The loan from the International Finance Corporation, a member of the World Bank Group, will help both the small and medium-sized enterprises (SMEs) as well as large corporations in Bangladesh stay afloat amid the Covid-induced economic slowdown.
The investment will help to keep businesses open and preserve jobs, which is critical to sustaining the Bangladeshi economy, according to a release.
Also read: IFC supporting SMEs during pandemic
The package is, in fact, part of IFC's $8 billion global Covid-19 fast-track financing facility to support companies during the ongoing public health crisis. This new investment comes under the Working Capital Solutions (WCS) programme of the Covid-19 response envelope, which is providing $2 billion globally to emerging-market banks, enabling them to support struggling firms.
This project will also be supported by the International Development Association’s Private Sector Window Blended Finance Facility, which is also supporting IFC’s WCS programme with a first-loss guarantee of up to $215 million in eligible countries.
With the financing, BRAC Bank is expected to extend loans to its SME and corporate customers, supporting businesses that are now coping with a new wave of Covid-19 in Bangladesh.
“BRAC Bank promotes businesses of all sizes but as the pioneer of SME banking, we are particularly conscious of the needs of SMEs and micro-enterprises that play a vital role in driving economic growth and employment-generation,” said Selim RF Hussain, Managing Director and CEO of BRAC Bank.
“The Covid scenario is challenging and at the same time difficult for both banks and their SME and corporate customers. We hope that the partnership with IFC would help us to continue supporting the Covid-impacted businesses and help them recover.”
Also read: MSMEs, farmers to benefit from IFC Covid-19 support
SMEs make up over 90 percent of businesses in Bangladesh and employ over 20 percent of the adult population. Their cash flows have been heavily disrupted by the ongoing pandemic. An IFC survey last October showed nearly a third of workers in Bangladesh’s micro, small and medium sized enterprises were jobless at the time, due to the Covid-induced financial downturn.
“Clearly, the impacts of Covid-19 are continuing to exact a heavy toll on businesses trying to keep operating and keep staff employed,” said Wendy Werner, IFC Country Manager for Bangladesh, Bhutan and Nepal. “This finance line to our long-standing partner, BRAC Bank, is the most recent part of IFC’s effort to help Bangladesh build back better from the Covid-19 pandemic.”
In Bangladesh, IFC has provided a total of $260 million in working capital solutions to banks and liquidity support to companies since the beginning of the Covid-19 crisis, including this new funding to BRAC Bank.