Bangladesh: Requests for an Arrangement Under the Extended Fund Facility, Request for Arrangement Under the Extended Credit Facility, and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh
IMF Staff Country Reports, February 2, 2023
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- Bangladesh: Requests for an Arrangement Under the Extended Fund Facility, Request for Arrangement Under the Extended Credit Facility, and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh
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Bibliographic details
- Published: February 2, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400232206.002
Overview
- Presents Bangladesh’s requests for:
- an Extended Arrangement under the Extended Fund Facility (EFF);
- an Arrangement under the Extended Credit Facility (ECF);
- an Arrangement under the Resilience and Sustainability Facility (RSF).
- Authorities are concurrently requesting access to the RSF to meet large climate financing needs.
- IMF proposes access at SDR 1000 million under the RSF.
Access and Justification
- IMF proposes access at SDR 1000 million under the RSF.
- Access at the maximum nominal limit is justified by:
- the strength and breadth of the proposed reforms;
- the balance of payment need associated with the implementation of reform measures;
- sound capacity to repay the IMF.
Program Scope, Duration, and Objectives
- Program duration: 42-month program.
- Stated program objectives:
- preserve macroeconomic stability;
- protect the vulnerable;
- foster inclusive and green growth.
Policy Content and Reform Focus
- The Letter of Intent and Memorandum of Economic and Financial Policies demonstrate program ownership and appropriate policies to reach the authorities’ program goals.
- Reforms will focus on:
- creating fiscal space to enable greater social and developmental spending;
- strengthening the financial sector;
- modernizing policy frameworks;
- building climate resilience.
Key Risks and Constraints
- Main program risk: limited scope to relax fiscal or monetary policy in the event of additional adverse real shocks.
- Underlying constraints cited:
- narrowing fiscal space;
- high inflation;
- reserve losses.
Staff Assessment and Rationale
- IMF staff view the proposed arrangements and reforms as sufficiently strong to justify RSF access at the maximum nominal limit, given balance of payments needs and repayment capacity.
- Program expected to support implementation of reform measures while addressing climate financing needs.
Content in this bundle
- 1bgdea2023001