The International Monetary Fund reached agreement with Bangladesh authorities that would allow the country to receive the second payment of funds under a $4.7 billion loan package.
(Bloomberg) — The International Monetary Fund reached agreement with Bangladesh authorities that would allow the country to receive the second payment of funds under a $4.7 billion loan package.
A team from the IMF reached a staff-level agreement on the policies needed to complete the first review of the loan program, the Washington-based lender said in a statement after concluding a visit to the country Thursday. The staff-level agreement is subject to approval from the IMF board.
“IMF staff welcomes the progress of reform implementation and the authorities’ continued commitment to undertake decisive policy actions, amid a challenging environment,” it said.
Bangladesh needs further monetary tightening, a neutral fiscal policy, and greater exchange rate flexibility in order to restore economic stability, the IMF said.
The South Asian nation had missed IMF targets on foreign currency reserves and tax collection.
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