New York/ Washington, May 16 – Bangladesh has requested an additional $762 million in financial support from the International Monetary Fund (IMF) to address growing macroeconomic pressures, the Fund said on Wednesday.
The request brings the country’s total financial assistance under ongoing arrangements to approximately $4.1 billion. The funding falls under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF).
“Amid significant macroeconomic challenges, the authorities requested an augmentation of SDR 567.2 million (about $762 million),” IMF Mission Chief for Bangladesh Chris Papageorgiou said in a statement. The proposed increase would raise total assistance under the ECF and EFF to SDR 3.04 billion, in addition to SDR 1 billion already allocated under the RSF.
A staff-level agreement on the third and fourth reviews of the programs has been reached, pending approval by the IMF Executive Board. The deal is contingent on prior actions, including comprehensive tax reforms and full exchange rate liberalization.
If approved, the new tranche will make SDR 983.8 million (approximately $1.3 billion) available to Bangladesh—SDR 650.5 million under ECF/EFF and SDR 333.3 million under the RSF.
The IMF noted that Bangladesh’s economy remains under strain from rising external financing needs and lingering domestic vulnerabilities. Real GDP growth slowed to 3.3% year-on-year in the first half of FY2025 due to civil unrest but is expected to recover slightly to 3.8% for the full year.
Inflation, which has neared double digits, is projected to ease to around 8.5% by the end of FY2025. However, risks remain skewed to the downside amid ongoing global uncertainty and stress in the banking sector.
The Fund emphasized the need for near-term policy tightening to address external imbalances and contain inflationary pressures. It also called for institutional reforms to strengthen the independence and governance of Bangladesh Bank.
“Improving transparency and governance is crucial for creating a more investor-friendly environment and expanding the export base beyond the ready-made garment sector,” the IMF said.
