The International Monetary Fund has approved new funding for Bangladesh, giving the country access to $1.33 billion under its ongoing support program.
The decision follows the completion of the IMF’s combined third and fourth review under three loan facilities.
Bangladesh will immediately receive $884 million through the Extended Credit Facility and Extended Fund Facility. An additional $453 million will be disbursed under the Resilience and Sustainability Facility.
The IMF also agreed to increase its support by 567.2 million special drawing rights under the ECF and EFF arrangements. The extension will run for six months. Bangladesh had asked for this increase in May to help meet external financing needs and support its economic stability.
The IMF said Bangladesh’s performance under the program has remained on track despite a challenging political and economic environment. The country continues to face high inflation, slow growth, and a shortfall in foreign financing.
Bangladesh first approached the IMF for a $4.7 billion bailout in 2023 after rising global commodity prices, driven by the war in Ukraine, reduced its foreign exchange reserves and made it harder to pay for fuel and gas imports.
