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 IMFโ€™s new Resilience and Stability Facility, a financing option for vulnerable economies.

$3.3 billion of the loan will be disbursed through the IMFโ€™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 โ€œpreserve macroeconomic stability, protect the vulnerable, and foster inclusive and green growth,โ€ according to an IMF press release. Meanwhile, funding from the RSF is expected to support the countryโ€™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.

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