On 29th May, IMF Approves US$732 Million Disbursement to Bangladesh for COVID-19.
The IMF’s executive board approved a disbursement of SDR 177.77 million (about US$ 244 million or 16.67 percent of quota) under the Rapid Credit Facility (RCF), and purchase of SDR 355.53 million (about US$ 488 million or 33.33 percent of quota) under the Rapid Financing Instrument (RFI).
This emergency assistance by the IMF will help Bangladesh to finance the health, social protection and macroeconomic stabilization measures, meet the urgent balance-of-payments and fiscal needs arising from the COVID-19 outbreak, and catalyze additional support from the international community.
The economy of Bangladesh is severely impacted by the COVID-19 pandemic with weaker domestic demand and a sharp decline in exports of Ready-Made Garments (RMG) and remittances inflows.
Govt of Bangladesh took several initiatives to contain the coronavirus spread such as the shutdown of major cities which inevitably affected the economic activities and hence slow growth.
Govt increased health expenditures, expanded food distribution and cash transfer programs to vulnerable populations, ensured the payment of wages in export-oriented industries, and facilitated the provision of working capital to businesses and farmers. The Bangladesh authorities remain committed to promoting strong and inclusive growth while preserving macroeconomic stability.
So, after going through all the effects of pandemic and steps taken by the govt to counter the pandemic, IMF Approves US$732 Million Disbursement to Bangladesh to address the urgent balance-of-payments and fiscal needs under the Rapid Credit Facility and the Rapid Financing Instrument.