The IMF has agreed to extend $1.15 billion to Bangladesh in the third portion within its multi-billion-dollar lending initiative.
A team from the IMF has reached a tentative agreement with the Bangladesh government on the necessary policies for completing the second assessment under the ECF/EFF/RSF schemes, as per a statement released today.
The tentative agreement is contingent upon approval from the Executive Board of the Washington-based institution, anticipated in the forthcoming weeks.
The completion of the second assessment will unlock approximately $932 million under the Extended Credit Facility (ECF)/Extended Fund Facility (EFF), and around $220 million under the Resilience and Sustainability Facility (RSF). Upon board approval, Bangladesh will gain access to roughly $1.15 billion.
This third portion coincides with the conclusion of the mission led by Chris Papageorgiou after a 15-day visit to Bangladesh today. The visit focused on economic and financial policies within the framework of the second review of the program.
"Policies to implement a formula-based adjustment mechanism for petroleum products have seen notable progress by the authorities under the IMF-backed program," stated Papageorgiou.
"Nevertheless, unexpected global financial tightening effects, alongside sustained high international commodity and food prices, alongside internal vulnerabilities, have resulted in persistently high inflation and declining foreign exchange (FX) reserves. This has compounded pressures on the economy, heightening the intricacy of macroeconomic obstacles."
