IMF and Bangladesh reach agreement on $1.3bn payout

WASHINGTON: The International Monetary Fund announced Wednesday that it has reached agreement to expand an existing multi-billion-dollar loan program with Bangladesh and to authorize a $1.3 billion payout.

The IMF expects Bangladesh’s export-driven economy to grow by just 3.8 percent this year, causing a significant early challenge for the new government of Muhammad Yunus, which took power last year after the toppling of the autocratic ex-premier Sheikh Hasina.

That would be the lowest growth rate outside of the Covid-19 pandemic for more than two decades, according to IMF data.

“Amid significant macroeconomic challenges, the authorities requested an augmentation,” of the existing loan program by around $762 million, IMF Bangladesh mission chief Evan Papageorgiou said in a statement following a visit to the country.