IMF approves over 689 mln USD in 2nd tranche loan for Bangladesh

DHAKA, Dec. 13 (Xinhua) -- The Executive Board of the International Monetary Fund (IMF) has approved over 689 million U.S. dollars in the second tranche of the 4.7 billion dollars loan package allocated for Bangladesh.

In a statement received here Wednesday, IMF said it allowed the authorities to withdraw the equivalent of 352.35 million SDR (special drawing rights) (about 468.3 million dollars) under the Extended Credit Facility (ECF)/Extended Fund Facility (EFF), and 166.67 million SDR (about 221.5 million dollars) under the RSF (Resilience and Sustainability Facility).

This brings total disbursements for Bangladesh under the ECF/EFF thus far to 704.70 million SDR (about 936.6 million dollars) and under the RSF to 166.67 million SDR (about 221.5 million dollars), it added.

The ECF/EFF and RSF arrangements for Bangladesh were approved by the IMF executive board on Jan. 30, 2023.

According to IMF, the ECF/EFF arrangement has helped 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 has supplemented 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, it said.