IMF approves near-$5b loan for Bangladesh
The IMF has approved a $4.7 billion funding package on Monday, clearing the way for disbursements to begin. Bangladesh will be the first Asian country to secure a loan under the IMF’s new Resilience and Stability Facility, a financing option for vulnerable economies.
$3.3 billion of the loan will be disbursed through the IMF’s traditional venues, with $1.4 billion under the RSF. The executive board approval will greenlight the immediate disbursement of $476 million, the IMF said.
Disbursements will continue over the next three-and-a-half years under a program that aims to “preserve macroeconomic stability, protect the vulnerable, and foster inclusive and green growth,” according to an IMF press release. Meanwhile, funding from the RSF is expected to support the country’s climate change resilience and adaptation efforts, the IMF said.
Bangladesh is the first South Asian country to win IMF funding this year. Both Sri Lanka and Pakistan reached staff-level agreements with the IMF in 2022, but neither country has unlocked funding.