• Saturday, February 24, 2024

Business

IMF approves £550m loan for Bangladesh

By: Eastern Eye

THE International Monetary Fund (IMF) announced last Tuesday (12) it authorized the release of close to $700 million (£550m) for Bangladesh after concluding it was making progress on programmed aimed at preserving macroeconomic stability.

The IMF said in a statement that it concluded the first review of two loan programmes, making around $690m (£542m) available to the country.

Bangladesh is navigating a challenging economic environment, according to the IMF, which said its economy had been buffeted by the knock-on effect of the war in Ukraine and high interest rates in many countries around the world.

Its economic growth slowed to an annual rate of six per cent in fiscal year 2023, while inflation jumped to a decade high of 9.9 per cent in the year to August, the IMF said.

“Bangladesh’s economy is navigating multi-faceted economic challenges,” IMF deputy managing director Antoinette Sayeh noted in a statement.

“Despite a difficult external environment, programme performance has been broadly on track, reflecting the authorities’ strong commitment,” she added.

Last Tuesday’s authorization brings the total disbursement to Bangladesh under the two programmes, approved in January 2023, to more than $1.1 billion.

Despite Bangladesh’s progress, Sayeh said more work needed to be done.

 

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