Beijing, China, May 21, 2020

AIIB Approves USD250 Million Loan to Bangladesh for COVID-19 Response

The Asian Infrastructure Investment Bank (AIIB) has approved a USD250 million loan to Bangladesh as the country grapples with the fallout from the novel coronavirus disease (COVID-19).

The loan, cofinanced with the Asian Development Bank (ADB), is part of a program to provide the Government of Bangladesh with budget support to mitigate the adverse effects of the pandemic on the country’s poor and most vulnerable, particularly those affected by job losses in small and medium enterprises and the informal sector, as well as strengthen social safety nets. The program also has specific targets to support women in export-oriented industries.

Bangladesh is extremely vulnerable to the COVID-19 virus given that it has one of the highest population densities in the world. Nearly 15 percent of households continue to live in poverty, with a high share of households living in informal settlements, and more than 80 percent of the workforce employed in the informal sector, all of which make it difficult and expensive to maintain social distancing measures to contain the spread of the virus. According to ADB estimates, a serious outbreak would result in job losses ranging from 1.4 to 3.7 million.

“Our support to Bangladesh is part of AIIB’s broader proactive efforts to respond to the needs of our vulnerable members to weather the COVID-19 crisis,” said AIIB Vice President, Investment Operations, D.J. Pandian.

Pandian noted that Bangladesh had in recent years performed exceedingly well with annual growth averaging 7.4 percent over the last five years. “It is incumbent on the international community to come together to ensure that the country does not fall behind but continues to make strides in its development efforts.”

While AIIB does not have a regular instrument for policy-based financing, the Bank is extending such financings on an exceptional basis under the COVID-19 Crisis Recovery Facility to support its members on projects cofinanced with the World Bank or the Asian Development Bank.

AIIB’s COVID-19 Crisis Recovery Facility, created as part of the coordinated international response to counter the COVID-19 crisis, has an initial size of USD5-USD10 billion to support AIIB members’ urgent economic, financial and public health pressures and quick recovery from the crisis. AIIB is currently reviewing projects from a number of members. Projects being proposed under the facility can be found here. Additional information about the Bangladesh COVID-19 Active Response and Expenditure Support Program can be found here.

 

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 102 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.

Logos for Download

AIIB logo is available in JPEG and PDF format.

DOWNLOAD

Media Contact

Lingxiao He

Press Officer

+86 10 8358 0683

SEND AN EMAIL
More News Articles

Seville, July 01, 2025

Sevilla Platform of Action Launched to Scale Country-Led Financing Approaches for Sustainable Development and Climate

Amid rising debt stress, limited fiscal space and escalating climate threats, country ownership of the development process is more important than ever. At the Fourth International Conference on Financing for Development (FFD4), two initiatives were launched under the Sevilla Platform of Action (SPA) to scale country-driven approaches to financing sustainable development and climate action and coordinate international support through the Global Financing Playbook.

READ MORE

Seville, June 30, 2025

AIIB and Arab Fund Forge Strategic Partnership to Advance Sustainable Infrastructure Development

The Asian Infrastructure Investment Bank (AIIB) and the Arab Fund have formalized a strategic partnership through the signing of a memorandum of understanding aimed at deepening cooperation and accelerating the delivery of sustainable infrastructure across shared priority regions.

READ MORE

Paris, June 30, 2025

African Development Bank, AIIB sign MOU renewing their collaboration on sustainable economic development for Africa

The African Development Bank and the Asian Infrastructure Investment Bank (AIIB) on Saturday signed an agreement strengthening their collaboration on sustainable economic development, designed to boost infrastructure development and economic opportunities across the African continent.

READ MORE

Paris, June 30, 2025

Heads of Multilateral Development Banks Commit to Strong Joint Action on Development Priorities

Heads of MDBs convene in Paris to reaffirm joint action on global development priorities and commit to reforms, enhanced coordination, and initiatives in energy, education, and water security.

READ MORE