The IMF said in a statement / File photo
The IMF said in a statement / File photo

The International Monetary Fund (IMF) has approved a loan of 4.7 billion dollars for Bangladesh.

Bangladesh approached the IMF for a loan in July 2022 due to economic difficulties and the International Monetary Fund approved its application earlier than Pakistan and Sri Lanka.

Under the IMF program, a loan of 3.3 billion dollars will be provided to Bangladesh, out of which 476 million dollars will be disbursed immediately.

The IMF board has also approved the allocation of $1.4 billion to Bangladesh under the new climate change fund, which will be the first Asian country to access the fund.

According to the IMF, the loan will be used to stabilize the economy while helping the Bangladeshi administration expand reforms.

In a statement released by the World Organization, Bangladesh was making good progress in reducing poverty and improving living standards, but the economic performance was affected by the Covid-19 epidemic and Russia’s attack on Ukraine.

Bangladesh also requested the World Bank and the Asian Development Bank to provide $2 billion in 2022 to improve foreign exchange reserves.

Bangladesh’s current account deficit reached $18.7 billion during the last financial year as garment exports were hit by rising energy prices.

The Bangladeshi government has raised fuel and energy prices in recent months after approaching the IMF, while electricity prices will increase by another 5 percent from February 1.