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

International Monetary Fund

No 2023/066, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents Bangladesh’s Requests for an Extended Arrangement under the Extended Fund Facility, an Arrangement under the Extended Credit Facility, and an Arrangement under the Resilience and Sustainability Facility (RSF). The authorities are concurrently requesting access to the RSF to meet large climate financing needs. IMF proposes access at SDR 1000 million under the RSF, in which 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, and sound capacity to repay the IMF. The Letter of Intent and Memorandum of Economic and Financial Policies demonstrate program ownership and appropriate policies to reach the goals of the authorities’ program. The main risk to the program is limited scope to relax fiscal or monetary policy in the event of additional adverse real shocks, given narrowing fiscal space, high inflation, and reserve losses. The 42-month program 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; modernizing policy frameworks; and building climate resilience.

Keywords: EFF arrangement; Bangladesh economy; EFF program; IMF Resilience and Sustainability Facility arrangement; RSF ref orms; Climate change; Climate finance; Global (search for similar items in EconPapers)
Pages: 125
Date: 2023-02-02
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