IMF and Bangladesh reach preliminary agreement for $4.5 billion in loans
DHAKA, Bangladesh (AP) — The International Monetary Fund on Wednesday reached a preliminary agreement with Bangladesh to provide $4.5 billion to help the country deal with the disruption caused by the war in Ukraine and manage the risks associated with the climate change.
The deal is subject to IMF board approval, which is expected within weeks. Bangladesh applied for the loans as its foreign exchange reserves were dwindling due to a weakening currency and soaring import costs.
The IMF said in a statement that the money was intended to stabilize the economy, protect the vulnerable and promote structural change to support strong, inclusive and sustainable growth.
“Bangladesh’s strong economic recovery from the pandemic was interrupted by Russia’s war in Ukraine, leading to a sharp widening of the current account deficit, a rapid decline in foreign exchange reserves, rising inflation and a slowdown in growth,” said Rahul Anand, who led a visit by the IMF staff mission.
The group arrived in Bangladesh late last month to iron out loan arrangements for the South Asian nation of more than 160 million people.
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