Stuff CorrespondentÂ
Bangladesh has requested a new financial arrangement from the International Monetary Fund (IMF) to back its economic reform agenda, confirmed IMF Mission Chief for Bangladesh Ivo Krznar today.
While the existing Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF) programs approved in January 2023 served as crucial policy anchors, Krznar noted that the country’s macroeconomic and political landscape has shifted significantly since then.
“Banking-sector weaknesses and low revenue mobilisation underscore the need for a renewed and sustained reform effort,” Krznar stated.
Key Highlights of the Proposed IMF Engagement:
Basis for Approval: Any new arrangement will depend on Bangladesh’s balance-of-payments needs and strong, credible policy commitments, subject to IMF Executive Board approval.
Immediate Next Steps: An IMF staff visit is being planned to assess recent economic developments, policy priorities, and ongoing reform challenges.
Future Negotiations: A separate negotiation mission will follow later to finalize the program’s financial size and specific reform commitments.