Bangladesh will receive immediate access to $884 million through the IMF’s Extended Credit Facility and Extended Fund Facility, in addition to another $453 million from the Resilience and Sustainability Facility, according to the fund.
The IMF also sanctioned an increase of 567.2 million special drawing rights (SDRs) under its ECF and EFF arrangements, along with a six-month extension.
Read more: Israel-Iran War LIVE Updates
In May, Bangladesh sought this augmentation to meet rising external financing needs and bolster macroeconomic stability. The IMF stated, “Bangladesh’s program performance has been broadly satisfactory despite the challenging political and economic context and increased downside risks.”
This decision comes in response to ongoing macroeconomic challenges, such as high inflation, sluggish growth, and a gap in external financing.
In 2023, Bangladesh approached the IMF for a $4.7 billion bailout, as its foreign reserves were impacted by a global rise in commodity prices linked to Russia’s invasion of Ukraine, complicating its ability to secure essential imports of fuel and gas.
