FX.co ★ IMF Approves USD 1.3 Billion Support for Bangladesh

The International Monetary Fund (IMF) has sanctioned a $1.33 billion support package for Bangladesh following the successful conclusion of the combined third and fourth reviews under three distinct lending frameworks. This assistance immediately avails $884 million through the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF), alongside an additional $453 million from the Resilience and Sustainability Facility (RSF). Furthermore, the IMF has approved an augmentation of Special Drawing Rights (SDR) amounting to 567.2 million under the ECF and EFF, paired with a six-month extension. This initiative is designed to aid Bangladesh in addressing its rising external financing needs and to navigate ongoing macroeconomic challenges, such as elevated inflation, sluggish economic growth, and an expanding external financing gap. Initially, Bangladesh sought the IMF's assistance in 2023 by securing a $4.7 billion bailout. This move was necessitated by declining foreign reserves, which were exacerbated by escalating global commodity prices following Russia's invasion of Ukraine.