South Korea will provide Bangladesh $50 million in a flexible loan as budget support to combat the economic fallout of the Covid-19 pandemic. A highly credible source at the Economic Relations Division (ERD) confirmed this to Dhaka Tribune. The ERD has sent a letter to the Finance Division requesting an opinion on the loan. The South Korean government agreed to provide Bangladesh a $50 billion flexible loan as budget support. The loan will be provided under South Korea’s development partner, “EDCF Program Loan for Covid-19 Emergency Response Program of Bangladesh,” to fight the economic fallout of the Covid-19 pandemic, mentioned the letter signed by ASM Mostafizur Rahman, deputy secretary at ERD. Earlier, the World Bank on Saturday approved $1.05 billion for three projects to help Bangladesh create quality jobs and accelerate economic recovery from the Covid-19 pandemic as well as build resilience to face future crises. According to the Bangladesh Institute of Development Studies (BIDS) survey report, Bangladesh will have 16.4 million new poor in 2020 as the incomes of the working class in urban and rural areas have fallen sharply due to the prolonged lockdown. Even in a post-lockdown optimistic scenario, the country’s overall poverty would increase by 25.13%, where rural poverty will be 24.23%and urban poverty will be 27.52%.
