24.1 C
Brunei
Friday, December 9, 2022
24.1 C
Brunei
Friday, December 9, 2022
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    IMF says agrees USD4.5B support package for Bangladesh

    DHAKA (AFP) – The International Monetary Fund (IMF) said yesterday it reached a preliminary agreement with Bangladesh to provide a support package worth USD4.5 billion.

    Bangladesh in common with other Asian economies has been hit hard by the sharp rise in global food and energy prices in the wake of the situation in Ukraine.

    An IMF delegation and Dhaka representatives “reached a staff-level agreement to support Bangladesh’s economic policies” with a total of USD4.5 billion under various facilities, the institution said in a statement, adding the deal was subject to IMF management approval.

    The package is “aimed at restoring macroeconomic stability and preventing disruptive adjustments to protect the vulnerable, while promoting structural change to support strong inclusive and green growth,” it said.

    It would also “expand the fiscal space to finance climate priorities identified in the authorities’ plans, including by catalysing other financing, and reducing external pressures from import-intensive climate investment,” the IMF added.

    The nation of some 170 million people approached the IMF earlier this year for support.

    A depreciating currency and dwindling foreign exchange reserves left Bangladesh unable to import sufficient fossil fuels.

    This forced Prime Minister Sheikh Hasina’s government to close diesel plants, leave some gas-fired power stations idle and impose lengthy power cuts of up to 13 hours a day to conserve existing stocks.

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