(MENAFN) On Wednesday, the International Monetary Fund (IMF) disclosed its approval to disburse USD1.15 billion to Bangladesh as the third segment of its extensive loan initiative. This decision follows the initial approval in January 2023, when the IMF sanctioned a USD4.7 billion loan to aid Bangladesh in navigating a foreign reserve crisis prompted by soaring inflation rates.
Notably, discussions between IMF staff and Bangladeshi authorities have resulted in a consensus on the policies pivotal for finalizing the second evaluation of the government program backed by the IMF, as outlined in an official statement. This agreement signifies a crucial step forward in sustaining the collaborative effort between Bangladesh and the IMF to address economic challenges and foster stability.
“The review is pending IMF Executive Board approval. Upon the Board’s approval, Bangladesh will have access to SDR871 million (about USUSD1,152 million) in financing,” it declared.
The IMF highlighted that Bangladesh authorities have undertaken significant reforms aimed at tackling macroeconomic imbalances. These reforms include restructuring the exchange rate system, introducing a crawling peg regime, and fully liberalizing retail interest rates. These measures signify a concerted effort by Bangladesh to address economic challenges and enhance stability under the guidance and support of the IMF.
“The authorities’ reform program supported by the IMF will continue to help Bangladesh navigate a difficult external environment and preserve macroeconomic stability, while accelerating economic reforms and delivering on their climate agenda to achieve sustainable, inclusive, green growth,” it further mentioned.
MENAFN09052024000045015839ID1108192502
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.