IMF approves $689 million second tranche loan for Bangladesh
The International Monetary Fund (IMF) has given its nod to the initial review of Bangladesh's 4.7 billion US dollar rescue package, sanctioning $689.8 million in financial aid to Dhaka.
This support comes amidst Dhaka's efforts to combat soaring inflation, especially in anticipation of the upcoming national elections in January.
Of the approved amount, Dhaka will promptly receive approximately $468.3 million, with an additional $221.5 million allocated to bolster the nation's climate change initiatives. The imminent disbursement of $681 million is anticipated to cover the country's import expenses for around 15 days.
IMF directives emphasize the necessity for Bangladesh to implement a tightened monetary policy, aimed at restoring immediate macroeconomic stability. This strategy is to be complemented by a neutral fiscal policy and increased flexibility in the exchange rate.
Antoinette Sayeh, the deputy managing director of the IMF, acknowledged Bangladesh's multifaceted economic challenges, highlighting that despite adversities in the external environment, the country's adherence to the program's benchmarks has been largely on target.
IMF assessments forecast Bangladesh's real GDP growth to reach 6% by 2024, while inflation is anticipated to ease to 7.25% year over year by the conclusion of 2024.
In January, Bangladesh had already received an initial disbursement of approximately $476 million following the IMF's approval of the loan.
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