The neighboring country Bangladesh has requested the International Monetary Fund (IMF) to increase US $ 762 million in financial aid for support to its decaying economy. If this happens, the total financial assistance for Bangladesh will be around US $ 4.1 billion under various arrangements. According to PTI news, the IMF Staff and Bangladesh officials have signed an employee-tier agreement on the policies required to complete the third and fourth reviews joint under extended loan facility (ECF), extended fund facility (EFF) and flexibility and stability facility (RSF).
Waiting for approval of IMF Executive Board
The IMF said in a statement that the Employees-level agreement is awaited by the approval of the IMF Executive Board and it depends on the previous actions including tax reforms and complete exchange rate liberalization. IMF Mission chief for Bangladesh Chris Papagorgio said that amidst important comprehensive economic challenges, authorities requested an increase of SDR (Special Drawing Rights) 567.2 million (about 762 million dollars) in IMF financial assistance to Bangladesh under ECF and EFF systems.
Total financial assistance
Papageorgio said that this growth would increase the total financial assistance SDR under the ECF and EFF arrangements to SDR 3,035.65 million (about 4.1 billion US $)), as well as concurrent RSF systems will be SDR SDR of about 1.3 billion US $ 1.3 billion). On completion of joint third and fourth reviews, SDR 983.8 million (about 1.3 billion US dollars) will be provided, including SDR 650.5 million (about 874 million US dollars) under ECF and EFF and SDR 333.3 million (about 448 million US dollars) under RSF.
GDP growth slow up to 3.3%
The IMF stated that the actual GDP growth, influenced by the popular rebellion, slowed down to 3 percent in the first half of FY 25 (Y-O-Y); However, it is estimated to grow again in the second half and reach 3. 8 percent for the entire financial year. The agency said that institutional reforms to strengthen the independence and administration of Bangladesh Bank would be necessary for ensuring long -term comprehensive economic and financial stability and effective implementation of comprehensive financial sector reforms.
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