This funding is made under a new program aimed at helping vulnerable middle-income countries and islands.
The Executive Board of the International Monetary Fund (IMF) has approved a $4.7 billion support program for Bangladesh at current exchange rates, making the South Asian country the first access to the new Resilience and Sustainability Facility (RSF).
The funding announced Monday includes $3.3 billion under the IMF’s Extended Credit Facility and Extended Fund Facility programs and $1.4 billion under the new RSF, which aims to help help vulnerable middle-income countries and islands.
The IMF said the board approved a staffing agreement reached in November last year that allows for immediate disbursement of about $476 million to Bangladesh.
The IMF said the 42-month loan package “will help maintain macroeconomic stability, protect vulnerable people and promote inclusive and green growth”.
The fund said it included reforms focused on creating financial space to enable greater social spending and development, strengthening Bangladesh’s financial sector, and promoting financial and governance reforms. , while building climate resilience.
The IMF announced a new RSF facility last October to provide reasonable long-term financial and policy support to vulnerable and low-middle-income countries in addition to lending toolkits. existing to which these countries have access. The RSF facility comes with a 20 year term and a 10 and a half year grace period during which no principal is repaid.
The IMF said the funding from the RSF will help support the country’s climate change mitigation and adaptation efforts.
