## 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_

## Source details

**Canonical URL:** [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](https://www.imf.org/en/publications/cr/issues/2023/02/02/bangladesh-requests-for-an-arrangement-under-the-extended-fund-facility-request-for-528951)

## Other formats

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## Bibliographic details
- Published: February 2, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400232206.002

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### 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.

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## Content in this bundle

- **1bgdea2023001**
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_Source: https://www.imf.org/en/publications/cr/issues/2023/02/02/bangladesh-requests-for-an-arrangement-under-the-extended-fund-facility-request-for-528951_