The board of directors of the Asian Development Bank (ADB), a development finance organization based in Manila, Philippines, has approved a USD 2 million grant from the Japan Fund for Poverty Reduction, an investment fund that is administered by ADB and funded by the government of Japan, for the development of remittance services for Bangladeshi migrant workers. The grant is intended to build a technology platform that will link microfinance institutions (MFIs) and banks to bring formal remittance services to approximately 20,000 households. The grant will also fund financial literacy programs with the goal of helping each household save or invest an additional USD 300 annually. The government of Bangladesh and several banks and MFIs in the country will contribute a total of USD 400,000 to the project, which is expected to run until 2013. Approximately 300,000 Bangladeshis work abroad, having sent remittances in 2009 estimated at the equivalent of USD 9 billion.
By Julie Moksim, Research Associate
About Asian Development Bank (ADB): Established in 1966 and headquartered in Manila, Philippines, the Asian Development Bank (ADB) is a development finance institution that consists of sixty-seven members, of which forty-eight are located in the region. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants and direct assistance in the form of equity investments, guarantees and credit to private companies in member countries. ADB reported a total capitalization of USD 56 billion as of December 31, 2009.
About the Japan Fund for Poverty Reduction: The Japan Fund for Poverty Reduction (JFPR) was established by the Japanese government and the Asian Development Bank (ADB) in May 2000. The Fund has total assets of USD 445 million as of 2010. JFPR’s goals are to help ADB clients by providing relief to the poor as well assisting the poor with generating their own income.
Sources and Resources:
Asian Development Bank (ADB) Press Release: “ADB, Japan to Help Bangladesh Expand Formal Remittance Services”, January 19, 2011, http://www.adb.org/Media/Articles/2011/13456-bangladesh-remittances-investments-projects/
MicroCapital.org Brief, January 27, 2011: Microcredit Summit Campaign of RESULTS Educational Fund (REF) Releases Report, “Number of Microcredit Clients Crossing the US $1.25 a Day Threshold During 1990-2008, Estimates From a Nationwide Survey in Bangladesh”, https://www.microcapital.org/microcapital-brief-microcredit-summit-campaign-of-results-educational-fund-ref-releases-report-number-of-microcredit-clients-crossing-the-us-1-25-a-day-threshold-during-1990-2008-estimates-fro/
MicroCapital’s Microfinance Universe Profile: Asian Development Bank (ADB)
MicroCapital’s Microfinance Universe Profile: Japan Fund for Poverty Reduction
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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