Bangladesh financial crisis, 4.7 billion dollar loan from IMF

Bangladesh has secured a $4.7 billion loan from the International Monetary Fund (IMF) to deal with the financial crisis.

According to the foreign news agency “Reuters”, in view of the economic crisis, the IMF has developed the request of Bangladesh to give it a loan of 4.7 billion dollars, among the requests for borrowing by the three countries of South Asia last year. What has been announced?

According to the report, the approval of the loan by the IMF before next year’s general elections is a success of Prime Minister Sheikh Hasina, where the country’s current account deficit was increasing, the taka was depreciating and foreign exchange reserves were decreasing. was

According to the report, about 3.3 billion dollars will be given to Bangladesh under the extended credit facility of the IMF, out of which the tranche of 47.6 million dollars will be released immediately.

The IMF’s Executive Board also announced $1.4 billion in climate investment for Bangladesh under its newly created Resilience and Sustainability Facility, making Bangladesh the first country in Asia to receive this amount. Who is

The IMF says the loans will protect macroeconomic stability and rebuild buffers while helping the authorities advance their reform agenda.

IMF Deputy Managing Director Antoniti M. Saya said that after independence, Bangladesh has made rapid progress in poverty reduction and living standards, however, the global epidemic of Corona virus and Russia’s war in Ukraine have hindered Bangladesh’s rapid development. It has created a disruption in the economy.

He said that several problems have created a challenge for the macro-economics in Bangladesh.

It should be noted that last year, Bangladesh took a loan of 2 billion dollars from the World Bank and the Asian Development Bank in an attempt to increase its foreign exchange reserves.

On the other hand, Pakistan and Sri Lanka are facing serious economic problems, but despite this, the two countries are not being approved for loans by the IMF.

According to the report, Bangladesh’s current account deficit hit a record $18.7 billion in the last fiscal year that ended June 30 as apparel exports failed to offset rising energy costs.

Bangladesh’s central bank expects the current account deficit to close to $6.8 billion at the end of the current fiscal year.

The government also hiked fuel and energy prices, approaching the IMF, while announcing a five per cent hike in retail electricity prices from Wednesday, the second such hike this month.