IMF 4.7 billion USD support program for Bangladesh
The Bangladesh Government has been facing several macroeconomic issues. The country holds a huge current account deficit. The value of the Taka, the currency of Bangladesh has been declining. Foreign Exchange reserves of the country have been decreasing. To help Bangladesh recover from these economic stresses, the International Monetary Fund recently sanctioned a 4.7 billion USD loan to the country.
About the IMF loan to Bangladesh
The IMF has released 3.3 billion USD of funds under its extended credit facility. Under its Resilience and Sustainability Facility for Climate Investments, IMF released 1.4 billion USD to Bangladesh. This is the first time IMF is releasing funds under this since its inception.
Pakistan and Sri Lanka did not receive IMF funds
In 2022, three Asian countries applied for loans from the International Monetary Fund. They were Sri Lanka, Pakistan, and Bangladesh. IMF released the funds to Bangladesh first. The rest two couldn’t get final approval from the financial organization despite the fact that they are doing worse than Bangladesh.
Current Scenario of Bangladesh
- The current Account Deficit of Bangladesh is 18.7 billion USD.
- Power prices hiked by 5% in the country
- Due to the energy crisis, the garment exports of the country declined
Why is Bangladesh in an economic crisis?
- COVID Pandemic related economic issues
- Ukraine – Russia war
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Month: Current Affairs - January, 2023
Category: Economy & Banking Current Affairs • International / World Current Affairs