Bangladesh: Staff Report for the 2001 Article IV Consultation
IMF Staff Country Reports, June 7, 2002
Source details
- Canonical URL
- Bangladesh: Staff Report for the 2001 Article IV Consultation
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Bibliographic details
- Published: June 7, 2002
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451804065.002
Summary and key findings
- The 2001 Article IV Consultation highlights that Bangladesh’s economy became progressively more fragile after the mid-1990s owing to a persistent pursuit of expansionary fiscal and monetary policies along with slow progress on needed structural reforms, especially in the banking and state-owned enterprises (SOEs) sectors.
- Rising credit demands of the government, the SOEs, and the private sector were readily accommodated by monetary policy.
- These growing domestic imbalances were reflected in pressures in the foreign exchange market and by a marked decline in international reserves.
Macroeconomic developments
- Expansionary fiscal policy and monetary accommodation after the mid-1990s contributed to increased vulnerability in the economy.
- Growing credit demands from the government, SOEs, and private sector were met through monetary policy, exacerbating domestic imbalances.
- External indicators showed pressures in the foreign exchange market and a marked decline in international reserves.
Structural reforms and financial sector issues
- Slow progress on needed structural reforms was concentrated especially in:
- Banking sector
- State-owned enterprises (SOEs)
- The banking system and SOEs are identified as key areas requiring reform to restore macroeconomic stability.
Policy implications and concerns
- Addressing the persistent expansionary fiscal and monetary stance is implied as necessary to reduce economic fragility.
- Accelerating structural reforms in the banking and SOE sectors is critical to mitigate rising domestic imbalances and to stabilize external reserves and the foreign exchange market.
Publication metadata and topics (as reported)
- Pages: 62
- Volume: 2002
- Issue: 113
- Series: Country Report No. 2002/113
- DOI: https://doi.org/10.5089/9781451804065.002
- Stock No: 1BGDEA0012002
- ISBN: 9781451804065
- ISSN: 1934-7685
- Date shown on landing page: June 7, 2002
- Subject: Banking, Commercial banks, Exchange restrictions, Expenditure, External debt, Financial institutions, Foreign exchange, Poverty, Poverty reduction
- Keywords: banking system credit, cash budget deficit, cash expenditure, Commercial banks, CR, deficit, Exchange restrictions, expansionary fiscal policy, Global, government, interbank money market rate, ISCR, Poverty reduction, transaction
International Monetary Fund. "Bangladesh: Staff Report for the 2001 Article IV Consultation", IMF Staff Country Reports 2002, 113 (2002).