Bangladesh seeks $5b in emergency support to boost forex reserves
Bangladesh is urgently seeking $5 billion in financial assistance from key international lenders to stabilize its declining foreign exchange reserves, interim government head Muhammad Yunus announced on Wednesday.
In a televised address, Yunus stated that the government is also in talks with Russia and China to secure loans with lower interest rates and extended repayment periods, as the country faces increasing pressure from foreign debt obligations.
The $5 billion request includes $3 billion from the International Monetary Fund (IMF), $1 billion from the World Bank, and another $1 billion from the Japan International Cooperation Agency (JICA). This financial aid is crucial for managing the economic challenges caused by rising global prices, largely attributed to the Russia-Ukraine conflict.
Bangladesh’s $450-billion economy has been under strain since the war led to a sharp rise in fuel and food import costs, prompting the government to secure a $4.7-billion bailout from the IMF last year.
Dr. Yunus also outlined plans to create six new commissions focused on reforming essential sectors, including the constitution, electoral system, judiciary, police, Anti-Corruption Commission, and public administration. These commissions will conduct detailed investigations and propose recommendations for reforms, with an expected start date of 1 October and a target to complete their work within three months.
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