The International Monetary Fund (IMF) has greenlighted a substantial financial boost for Bangladesh, agreeing to extend a generous $1.15 billion as part of its ongoing loan program.
In an announcement today, the IMF disclosed that a team had reached a crucial staff-level agreement with Bangladesh`s government, outlining the necessary policies to advance through the second review within the framework of the ECF/EFF/RSF arrangements.
This pivotal agreement is now poised for consideration by the Executive Board of the IMF, stationed in Washington, with a decision anticipated in the forthcoming weeks.
Upon successful completion of the second review, Bangladesh stands to gain access to approximately $932 million through the Extended Credit Facility (ECF)/Extended Fund Facility (EFF) and an additional $220 million under the Resilience and Sustainability Facility (RSF), totaling the substantial $1.15 billion package.
This financial injection arrives as a culmination of the recent 15-day visit by the IMF mission team, spearheaded by Chris Papageorgiou, which concluded its discussions in Bangladesh today. Throughout the visit, extensive deliberations were held concerning economic and financial policies in alignment with the ongoing program review.
Reflecting on Bangladesh`s progress, Papageorgiou remarked, "The authorities have made significant strides in implementing structural reforms as part of the IMF-supported program, notably the introduction of a formula-based mechanism for adjusting fuel prices."
However, he also highlighted challenges stemming from global financial conditions and persistently high international commodity and food prices, compounded by domestic vulnerabilities. These factors have contributed to ongoing concerns such as high inflation and dwindling foreign exchange reserves, intensifying the macroeconomic landscape`s complexity.
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