The IMF’s ECF/EFF approval has enabled immediate disbursement of approximately US$ 476 million as the first of seven tranches scheduled over 42 months. The remaining amount will be in six equal installments of US$704 million each.
The 42-month program will help maintain macroeconomic stability, protect the vulnerable, and promote inclusive and green growth. Reforms will focus on creating fiscal space to enable greater social and developmental spending, strengthening the financial sector, modernizing the policy framework and building climate resilience.
The IMF said Bangladesh’s strong economic recovery from the pandemic has been hampered by Russia’s war in Ukraine, which has led to a sharp increase in Bangladesh’s current account deficit, a depreciation of the taka and a decline in foreign exchange reserves.