Bangladesh requests new financial arrangement from IMF
Bangladesh has requested a new financial arrangement from the IMF to support its economic reform programme, said International Monetary Fund (IMF) Mission Chief for Bangladesh Ivo Krznar.
“IMF staff are engaging with the authorities on their reform agenda and policy priorities as part of the Fund's consideration of possible next steps,” Krznar said in a statement today.
For all latest news, follow The Daily Star's Google News channel. He said that Bangladesh's current arrangements under the Extended Credit Facility, Extended Fund Facility, and Resilience and Sustainability Facility have served as an important policy anchor during a difficult period, but that the macroeconomic and political context has changed substantially since the IMF-supported programme was approved in January 2023.
"Banking-sector weaknesses and low revenue mobilisation underscore the need for a renewed and sustained reform effort," he said.
Krznar added that any new arrangement would need to be based on Bangladesh's balance-of-payments needs and strong policy commitments anchored by a credible reform agenda, and would be subject to IMF policies and Executive Board approval.
A staff visit to Bangladesh is being planned to assess recent economic developments, policy priorities, and reform challenges. Discussions on the parameters of a potential new programme — including its size and related reform commitments — would follow in a separate negotiation mission.
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