The grant will be used for implementation of `Promoting Financial Services for Poverty Reduction (PROSPER) programme' mainly through Bangladesh Bank and Palli Karma Sahayak Foundation (PKSF).

The overall objective of the programme is to reduce in line with the Poverty Reduction Strategy of the government.

It aims at improving access to financial services by extreme poor, farmers, and micro and small enterprises through an innovation fund component.

The programme also aims at eradicating `Monga', a kind of seasonal hunger that often prevails in the northern part of the country.

Other activities under the programme include upgradation of the Credit Information Bureau, facilitation of an effective Micro Credit Regulatory Authority and Capacity Building for Professionalisation in micro-finance.

Bangladesh Bank will coordinate the overall programme to be implemented by Bangladesh Bank, PKSF, Micro Credit Regulatory Authority and Institute of Micro Finance.

Bangladesh Bank will upgrade the current Credit Information Bureau and support the development of the Micro Credit Regulatory Authority and implement an innovation fund for small and micro enterprise lending by banks.

PKSF will implement the extreme poor component of the programme including `Monga' eradication and will also implement Micro Enterprise and Farmers Innovation Fund mainly with the NGOs.

The Institute of Micro Finance will work for capacity building aiming at developing professionalism in this sector.

ERD Secretary M Aminul Islam Bhuiyan and acting Country Representative of DFID, Bangladesh Elizabeth Carriere signed the LoE on behalf of their respective governments.

Speaking on the occasion, both sides expressed their commitment to continue cooperation between the two countries in future.