Review: IMF, Bangladesh agree on 1st review of $4.7 billion bailout

DHAKA: Bangladesh and the Worldwide Financial Fund (IMF) reached a staff-level settlement on the primary evaluation of a $4.7 billion bailout on Thursday, in a lift for the cash-strapped financial system because it heads in the direction of a nationwide election in January.
Bangladesh’s $416-billion financial system was one of many world’s quickest rising for years, however has not too long ago struggled to pay for imported gasoline as its greenback reserves have shrunk by greater than a 3rd as a result of pricey imports following Russia’s invasion of Ukraine.
Completion of the primary evaluation, topic to IMF board approval, will make about $681 million in loans accessible to the nation, the IMF stated.
“The authorities have made substantial progress on structural reforms beneath the IMF-supported programme, however challenges stay,” the Fund stated. “Continued world monetary tightening, coupled with current vulnerabilities, is making macroeconomic administration difficult, placing pressures on the Taka and FX reserves.”
The IMF permitted $4.7 billion in loans to Bangladesh in January, with a direct disbursement of about $476 million, making it the primary to safe such funds out of three South Asian international locations that utilized final yr.
Bangladesh’s central financial institution hopes the IMF board assembly on December 11 will approve the second tranche of loans, its spokesperson stated.
The nation is battling stubbornly excessive inflation spurred by a spike in vitality and meals costs, together with a weakening forex.

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