{
  "title": "IMF Executive Board Approves US$3.3 Billion Under the Extended Credit Facility/Extended Fund Facility and US$1.4 Billion Under the Resilience and Sustainability Facility for Bangladesh",
  "publication": "IMF News, January 30, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/01/30/pr2325-bangladesh-imf-executive-board-approves-usd-ecf-eff-and-usd-under-rsf",
  "canonical": "https://www.imf.org/en/news/articles/2023/01/30/pr2325-bangladesh-imf-executive-board-approves-usd-ecf-eff-and-usd-under-rsf",
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  "summary": "IMF Executive Board Approves US$3.3 Billion Under the Extended Credit Facility/Extended Fund Facility and US$1.4 Billion Under the Resilience and Sustainability Facility for Bangladesh",
  "publishDate": "2023-01-30",
  "sections": [
    {
      "heading": "Financing approval and program design",
      "content": "- Executive Board approved ECF/EFF arrangements of SDR 2.5 billion (equivalent to 231.4 percent of quota or about US$3.3 billion).\n- Concurrent RSF arrangement approved of SDR 1 billion (equivalent to 93.8 percent of quota or about US$1.4 billion).\n- Approval enables immediate disbursement of SDR 352.35 million (about US$476 million).\n- Program duration: 42-month arrangements.\n- Bangladesh is the first country in Asia to receive financing under the RSF."
    },
    {
      "heading": "Program objectives and reform priorities",
      "content": "- Program aims to:\n  - Preserve macroeconomic stability and rebuild buffers.\n  - Protect the vulnerable and prevent disruptive adjustments.\n  - Foster inclusive and green growth.\n- Reforms will focus on:\n  - Creating fiscal space to enable greater social and developmental spending.\n  - Strengthening the financial sector, including oversight, governance, and regulatory framework.\n  - Modernizing policy frameworks and improving public finance, investment, and debt management.\n  - Building climate resilience and catalyzing additional official and private finance via RSF.\n  - Implementing a domestic revenue mobilization strategy relying on tax policy and revenue administration reforms.\n  - Structural reforms to expand trade and foreign direct investment, deepen the financial sector, develop human capital, and improve governance to enhance the business climate."
    },
    {
      "heading": "Economic context and rationale",
      "content": "- Recent shocks:\n  - Bangladesh’s robust recovery from the pandemic was interrupted by Russia’s war in Ukraine, causing a sharp widening of the current account deficit, depreciation of the Taka, and a decline in foreign exchange reserves.\n- RSF purpose:\n  - Supplement ECF/EFF resources to expand fiscal space for climate investment priorities, strengthen institutions, and enhance climate-spending efficiency to build resilience and catalyze additional financing.\n- Long-term goals:\n  - Support Bangladesh’s aspiration to reach upper-middle income status by 2031 and meet the Sustainable and Development Goals (SDGs)."
    },
    {
      "heading": "Selected economic indicators (FY2019–27) — key series (as reported)",
      "content": "- Real GDP (FY19–FY27): 7.9, 3.4, 6.9, 7.2, 5.5, 6.5, 7.1, 7.3, 7.4\n- Consumption — Private (FY19–FY27): 4.9, 3.0, 8.0, 13.2, 7.6, 4.1, 4.7, 5.7\n- Gross Capital Formation (FY19–FY27): 8.6, 0.2, 8.1, 10.0, -6.2, 10.5, 12.4, 11.8, 10.9\n- Exports of goods and services growth (selected years): 11.5, -17.5, 9.2, 23.2, -7.2, 8.9, 9.0\n- Imports of goods and services growth (selected years): 0.5, -11.4, 15.3, 45.1, -22.6, 14.2, 5.1, 6.0\n- GDP deflator (selected values): 3.7, 3.8, 5.0, 5.2, 4.8, 4.5, 5.4\n- CPI inflation (annual average): 5.6\n- CPI inflation (end of period): 5.9\n- Central Government: Total revenue and grants (percent of GDP, selected years): 8.5, 9.4, 8.7, 8.8, 9.7, 10.3, 10.2\n- Central Government: Total expenditure (percent of GDP, selected years): 13.6, 13.3, 13.0, 12.6, 14.5, 14.4, 14.8, 15.2\n- Overall balance (including grants, percent of GDP, selected years): -5.4, -4.8, -3.6, -3.8, -5.6, -5.1, -5.0\n- Public sector total debt (percent of GDP, FY19–FY27): 32.0, 34.5, 35.6, 39.0, 42.1, 42.2, 42.3, 42.5\n- Of which: External debt (percent of GDP, FY19–FY26): 14.6, 15.1, 17.0, 18.9, 19.0, 18.6, 18.1, 17.3\n- Current account balance (percent of GDP, FY19–FY26): -1.3, -1.5, -1.1, -4.1, -3.2, -4.2, -3.5\n- Trade balance (percent of GDP, FY19–FY26): -6.4, -10.8, -7.6, -8.4, -6.7\n- Transfers (percent of GDP, selected): 5.3, 4.2\n- Of which: Remittances (percent of GDP, selected): 4.6, 4.4\n- Financial account balance (percent of GDP, selected): 1.5, 2.3, 3.1, 2.5\n- Foreign direct investment, net (percent of GDP, selected): 0.3, 1.0, 1.2, 1.3\n- Gross international reserves (billions of U.S. dollars, FY19–FY26): 32.7, 36.0, 46.4, 33.4, 30.0, 34.2, 40.0, 53.1\n- Reserves in months of next year's imports (selected): 3.5\n- Broad money (M2) growth (selected years): 52.0, 53.8, 54.6, 52.8, 53.6, 54.2, 54.8, 55.4\n- Credit to private sector (percent of GDP, selected): 37.2, 37.3, 36.2, 36.6, 36.7, 37.5, 37.9, 38.0, 38.7\n- Gross national savings (percent of GDP, FY19–FY26): 31.1, 31.4, 30.8, 25.6, 27.8, 28.0, 30.2, 32.9\n- Gross investment (percent of GDP, FY19–FY26): 32.2, 31.3, 31.0, 31.7, 33.7, 35.0, 35.8"
    },
    {
      "heading": "Key messages from IMF management (Ms. Antoinette M. Sayeh)",
      "content": "- Emphasized steady progress in reducing poverty and improving living standards since independence, noting setbacks from COVID-19 and Russia’s war in Ukraine.\n- Stressed the need to accelerate an ambitious reform agenda, invest substantially in human capital and infrastructure, and tackle climate change risks to protect macroeconomic stability.\n- Noted RSF will complement ECF/EFF reforms by improving climate investment potential, strengthening institutions, and catalyzing additional finance.\n\nSource: IMF Press Release No. 23/25, January 30, 2023.\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/antoinette-monsio-sayeh\n- PRESS CENTER\n- Bangladesh and the IMF\n- IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- ECF\n- EFF\n- RSF\n- U.S. dollar per SDR\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/01/30/pr2325-bangladesh-imf-executive-board-approves-usd-ecf-eff-and-usd-under-rsf"
    }
  ],
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    "[Bundle manifest](/en/news/articles/2023/01/30/pr2325-bangladesh-imf-executive-board-approves-usd-ecf-eff-and-usd-under-rsf/bundle-manifest.json)",
    "Published: January 30, 2023",
    "Executive Board approved ECF/EFF arrangements of SDR 2.5 billion (equivalent to 231.4 percent of quota or about US$3.3 billion).",
    "Concurrent RSF arrangement approved of SDR 1 billion (equivalent to 93.8 percent of quota or about US$1.4 billion).",
    "Approval enables immediate disbursement of SDR 352.35 million (about US$476 million).",
    "Program duration: 42-month arrangements.",
    "Bangladesh is the first country in Asia to receive financing under the RSF.",
    "Program aims to:",
    "Reforms will focus on:",
    "Recent shocks:",
    "RSF purpose:",
    "Long-term goals:",
    "Real GDP (FY19–FY27): 7.9, 3.4, 6.9, 7.2, 5.5, 6.5, 7.1, 7.3, 7.4",
    "Consumption — Private (FY19–FY27): 4.9, 3.0, 8.0, 13.2, 7.6, 4.1, 4.7, 5.7",
    "Gross Capital Formation (FY19–FY27): 8.6, 0.2, 8.1, 10.0, -6.2, 10.5, 12.4, 11.8, 10.9",
    "Exports of goods and services growth (selected years): 11.5, -17.5, 9.2, 23.2, -7.2, 8.9, 9.0",
    "Imports of goods and services growth (selected years): 0.5, -11.4, 15.3, 45.1, -22.6, 14.2, 5.1, 6.0",
    "GDP deflator (selected values): 3.7, 3.8, 5.0, 5.2, 4.8, 4.5, 5.4",
    "CPI inflation (annual average): 5.6",
    "CPI inflation (end of period): 5.9",
    "Central Government: Total revenue and grants (percent of GDP, selected years): 8.5, 9.4, 8.7, 8.8, 9.7, 10.3, 10.2",
    "Central Government: Total expenditure (percent of GDP, selected years): 13.6, 13.3, 13.0, 12.6, 14.5, 14.4, 14.8, 15.2",
    "Overall balance (including grants, percent of GDP, selected years): -5.4, -4.8, -3.6, -3.8, -5.6, -5.1, -5.0",
    "Public sector total debt (percent of GDP, FY19–FY27): 32.0, 34.5, 35.6, 39.0, 42.1, 42.2, 42.3, 42.5",
    "Of which: External debt (percent of GDP, FY19–FY26): 14.6, 15.1, 17.0, 18.9, 19.0, 18.6, 18.1, 17.3",
    "Current account balance (percent of GDP, FY19–FY26): -1.3, -1.5, -1.1, -4.1, -3.2, -4.2, -3.5",
    "Trade balance (percent of GDP, FY19–FY26): -6.4, -10.8, -7.6, -8.4, -6.7",
    "Transfers (percent of GDP, selected): 5.3, 4.2",
    "Of which: Remittances (percent of GDP, selected): 4.6, 4.4",
    "Financial account balance (percent of GDP, selected): 1.5, 2.3, 3.1, 2.5",
    "Foreign direct investment, net (percent of GDP, selected): 0.3, 1.0, 1.2, 1.3",
    "Gross international reserves (billions of U.S. dollars, FY19–FY26): 32.7, 36.0, 46.4, 33.4, 30.0, 34.2, 40.0, 53.1",
    "Reserves in months of next year's imports (selected): 3.5",
    "Broad money (M2) growth (selected years): 52.0, 53.8, 54.6, 52.8, 53.6, 54.2, 54.8, 55.4",
    "Credit to private sector (percent of GDP, selected): 37.2, 37.3, 36.2, 36.6, 36.7, 37.5, 37.9, 38.0, 38.7",
    "Gross national savings (percent of GDP, FY19–FY26): 31.1, 31.4, 30.8, 25.6, 27.8, 28.0, 30.2, 32.9",
    "Gross investment (percent of GDP, FY19–FY26): 32.2, 31.3, 31.0, 31.7, 33.7, 35.0, 35.8",
    "Emphasized steady progress in reducing poverty and improving living standards since independence, noting setbacks from COVID-19 and Russia’s war in Ukraine.",
    "Stressed the need to accelerate an ambitious reform agenda, invest substantially in human capital and infrastructure, and tackle climate change risks to protect macroeconomic stability.",
    "Noted RSF will complement ECF/EFF reforms by improving climate investment potential, strengthening institutions, and catalyzing additional finance.",
    "[https://www.imf.org/en/about/senior-officials/bios/antoinette-monsio-sayeh](https://www.imf.org/en/about/senior-officials/bios/antoinette-monsio-sayeh)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Bangladesh and the IMF](http://www.imf.org/external/country/BGD/index.htm)",
    "[IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[ECF](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)",
    "[EFF](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/20/56/Extended-Fund-Facility)",
    "[RSF](https://www.imf.org/en/About/Factsheets/Sheets/2022/resilience-and-sustainability-facility-rsf)",
    "[U.S. dollar per SDR](https://www.imf.org/external/np/fin/data/rms_sdrv.aspx)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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