Asian Development Bank (ADB) under its commercial co-financing programme is going to offer risk guarantee loans to boost local and foreign private sector investment in Bangladesh.

Under the programme, ADB will offer Complementary Co-financing Scheme, Political Risk Guarantee, Partial Credit Guarantee and Export Credits.

Foreign and local investors with long term projects can get the loans with risk guarantee through some local private banks, said Daniel Wanger, senior commercial co-financing specialist of ADB, at a workshop on ADB's guarantee products to the private sector yesterday in Dhaka.

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) organised the workshop where Mir Nasir Hossain, president of FBCCI, Dewan Sultan Ahmed, second vice president of FBCCI, and high officials from some private banks were also present.

Wanger said ADB offers $150m for Political Risk Guarantees and $75m for Partial Credit Guarantees for 15-year projects.

He said investors can get the loans for any of new projects, but the ADB will encourage some special areas such as gas, power, and port development.

He also said rule of law, political stability and good business environment are vital to attracting investment in any country.

He however said, “Not only Bangladesh, but every country in the world is facing political unrest. So, the borrowers will get financial guarantees from ADB for some risks stemming from political violence, terrorism, strike, riots and civil commotion,” he added.

“The new scheme is specially designed for attracting foreign direct investment in Bangladesh,” he said adding that Bangladesh is a good destination for investment as Tata and Dhabi Group are planning to invest in the country.

So, the ADB's new products will be very fruitful for the investors who want to invest in Bangladesh, he hoped.

Speaking at the workshop, the FBCCI president said lack of adequate capital is one of barriers of private entrepreneurs.

ADB's initiative will be very helpful for the investors, he hoped.