DHAKA, Jan 31, 2023 (BSS) - Finance Minister AHM Mustafa Kamal today said the 
approval of US$4.7 billion loan from the International Monetary Fund (IMF) 
proved that the basic areas of the country's macroeconomic fundamentals are 
on solid foundation.

"The country's macroeconomic fundamentals are better than many other 
countries of the world," he said.

The Finance Minister said this after the IMF approved Bangladesh's US$4.7 
billion loan proposal during a board meeting yesterday.

He alleged that many had expressed doubt that the international financing 
organisation would not extend such credit facility to Bangladesh due to its 
alleged weaknesses in the basic macroeconomic fundamentals. But, ultimately 
those proved wrong with the approval of the credit.

Kamal thanked the IMF for extending such credit support especially its Deputy 
Managing Director Antoinette M. Sayeh and Mission Chief Rahul Anand alongside 
the other officials involved in this process.

Following the approval of credit, Bangladesh will get about US$3.3 billion 
under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) 
and about US$1.4 billion under the Resilience and Sustainability Facility 
(RSF).

IMF's ECF/EFF approval has enabled the immediate disbursement of about US$476 
million as the first of the seven installments slated over 42 months. The 
remaining amount will be in six equal installments of US$704 million each.

The 42-month programme will help preserve macroeconomic stability, protect 
the vulnerable, and foster inclusive and green growth. Reforms will focus on 
creating fiscal space to enable greater social and developmental spending, 
strengthening the financial sector, modernising policy frameworks and 
building climate resilience.

IMF said Bangladesh's robust economic recovery from the pandemic has been 
interrupted by Russia's war in Ukraine, leading to a sharp widening of 
Bangladesh's current account deficit, depreciation of the Taka and a decline 
in foreign exchange reserves.

The IMF-supported programme under the ECF/EFF arrangements will help preserve 
macroeconomic stability and prevent disruptive adjustments to protect the 
vulnerable, while laying the foundations for strong, inclusive and 
environmentally sustainable growth. 

The concurrent RSF arrangement will supplement the resources made available 
under the ECF/EFF to expand the fiscal space to finance climate investment 
priorities identified in the authorities' plans, help catalyze additional 
financing, and build resilience against long-term climate risks.