Chief Representative's Speech

Ms. Fatima Yasmin, Honorable Secretary, Economic Relations Division
His Excellency, Mr. Naoki Ito, Honorable Ambassador of Japan to Bangladesh
Distinguished Guests, Ladies and Gentlemen
Assalamu-Alaikum, Namaskar, Very Good Morning

It is my great honor to be here today to sign, on behalf of JICA, Loan Agreement of the ‘COVID-19 Crisis Response Emergency Support Loan', together with Honorable Secretary Ms. Fatima Yasmin, being witnessed by His Excellency Ambassador Mr. Naoki Ito.

This Loan, amounting to 35 billion Japanese Yen, is a general budget support co-financed with the ADB. It is designed to strengthen Bangladesh's capacity to respond to COVID-19 and revitalize economic activities largely hit by the pandemic. The conditions of the loan is very concessional, with an interest rate of 0.01% and repayment period of 15 years including 4 years of grace period,

Bangladesh is one of the first recipient countries of this new facility designed by the Government of Japan to help developing countries globally in augmenting COVID-19 response program and stimulating economic activities.

Ladies and gentlemen,
As is the case across the world, the pandemic of COVID-19 has had a huge socio-economic impact on Bangladesh, as well. Last year, Bangladesh was one of the fastest growing economies in Asia and Pacific region, with a 7-8% annual growth rate. However, according to the World Bank, because of Covid-19 outbreak, GDP growth forecast will be 2-3% in 2020. Country's tax income is expected to decline by 10.8%. The pandemic also seriously affected export and overseas remittance, and damaged SMEs and vulnerable farmers.

Ladies and gentlemen,
Amid the pandemic, government of Bangladesh has taken prompt actions to control the spread of the disease and manage its impact on health, welfare, and the economy. Honorable Prime Minister announced an 11.2 billion USD, huge Countercyclical Expenditure Package, to mitigate the negative social impact by providing various measures to impacted industries and the vulnerable groups. I would like to praise the timely and effective responses made by the government in spite of this spread of novel coronavirus, seeking the co-existence of containment of the virus spread and the economic recovery. I also deeply appreciate the efforts made by the frontline workers combating against damage caused by Covid-19

At this backdrop, this loan, we signed today, is expected to benefit Bangladesh immediately in collaboration with other development partners such as ADB, IMF and World Bank. The loan will contribute to the strengthening of social protection to poor and vulnerable people, safety net to the people of old age and distressed women, salary support for workers, mostly women in export-oriented industries, as well as assisting the government's stimulus programs to create jobs, low interest loans to affected industries and sectors, and micro, small and medium sized enterprises.

The entire amount of this loan funds will be disbursed right after the effectuation of the loan agreement. We believe that this emergency support loan would be effectively used by the Government of Bangladesh and complement our other project-type assistance in this country.

Ladies and gentlemen,
The world is still in the middle of fighting against this pandemic. Japan is no exception. We all need to stand together to overcome this unprecedented crisis. In Bangladesh, JICA has made our efforts to assist the Government responses, including supply of PPEs, technical transfer utilizing the on-line system, support of the development of PPE quality assurance mechanism, and flexible utilization of existing ODA loans. I believe the signing of this loan today further demonstrates Japan`s strong commitment to support this fight of people of Bangladesh, our long-standing friend since its independence.

I sincerely believe that Bangladesh will utilize this crisis as an opportunity to augment its healthcare systems, social security for its citizens and will revive its economic growth. JICA will continue to provide its supports to the development of Bangladesh and for achieving inclusive and sustainable growth.

Thank you very much.

Sobaike Onek Dhannobad