IMF approves $4.7b loan for Bangladesh
The Executive Board of the International Monetary Fund (IMF) has approved 4.7 billion US dollar in loans for Bangladesh, helping the country build a buffer against depleting foreign reserves.
Bangladesh will get about 3.3 billion dollar under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) and about 1.4 billion dollar under the Resilience and Sustainability Facility (RSF), an IMF press release on early Tuesday said.
Besides, the Washington-based multilateral lender's ECF/EFF approval has enabled the immediate disbursement of about 476 million dollar as the first of the seven installments slated over 42 months. The remaining amount will be in six equal instalments of 704 million dollar each.
'The 42-month program will help preserve macroeconomic stability, protect the vulnerable, and foster inclusive and green growth. Reforms will focus on creating fiscal space to enable greater social and developmental spending; strengthening the financial sector; modernizing policy frameworks; and building climate resilience,' reads the press release.
Bangladesh's Finance Minister AHM Mustafa Kamal said, 'We are certainly grateful to the IMF for this loan. Special thanks and appreciation to the team that visited Bangladesh on this loan, including IMF Deputy Managing Director (DMD) Antoinette Monceau Sayeh and Head of Mission Rahul Anand.'
Mustafa Kamal further said, 'Many doubted that the IMF might not give us this loan. They thought the fundamental areas of our macroeconomy were weak, so the IMF would refrain from lending. This loan approval also proves that the fundamental areas of our macroeconomy are standing on a solid foundation and are better than many other countries.'
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