WEB DESK
The International Monetary Fund (IMF) Executive Board on Monday approved a total of USD 4.7 billion loan for Bangladesh. It includes USD 3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) and USD 1.4 billion under the Resilience and Sustainability Facility (RSF) for Bangladesh.
The fund will be disbursed to Bangladesh over a period of 42 months to support Bangladesh’s economic policies. Bangladesh is the first country in Asia to receive financing under the RSF. The approval of ECF/ EFF enables immediate disbursement of USD 476 million to the country, says the IMF statement released on Tuesday.
The IMF commended Bangladesh for its robust economic recovery from the pandemic which was interrupted by the Russia-Ukraine war leading to a widening of current account deficit and decline in foreign exchange reserve in the country. The IMF said that the authorities in Bangladesh realise the need to address long standing structural issues and vulnerabilities related to climate change to attract private investment and enhance productivity.
Deputy Managing Director and Acting Chair of the IMF meeting Antoinette M. Sayeh said that multiple shocks have made macroeconomic management challenging in Bangladesh. She said the authorities need to accelerate their ambitious reform agenda to achieve a more resilient, inclusive, and sustainable growth.
Responding to the IMF decision to provide USD 4.7 billion loan to Bangladesh, Finance Minister AHM Mustafa Kamal told the media that loan approval also proves that the fundamental areas of the country’s economy are standing on a solid foundation and are better than many other countries.