The International Monetary Fund would release a credit instalment of $140.5m as its mission concluded the fourth review early this month under a three-year Extended Credit Facility (ECF) arrangement of about $1bn.
The staff-level agreement is, however, subject to review by the management and the executive board of the IMF, said a statement issued yesterday.
Upon the completion of the review, expected in May, the instalment would be made available to Bangladesh – the fifth of the seven-instalment credit.
An IMF mission, led by Rodrigo Cubero, visited Dhaka during March 19 to April 2 to conduct the review. They met the ministers of finance and planning, the secretaries of finance and banking, the central bank governor, and development partners.
The mission reached agreement on the quantitative targets and policies needed to complete the fourth review based on sound macroeconomic policies, the government’s on-track economic programmes and progress on structural reforms.
“Real GDP growth is expected to be below 6% for fiscal year 2014 as unrest and uncertainty in the run-up to the January 2014 general election have taken a toll on the Bangladesh economy,” Cubero said in the statement.
Imports, remittances, tax collections and credit growth have all slowed. Inflation has edged up, largely due to food supply disruptions. Exports, however, have proven resilient, helped by Bangladesh’s growing share of the global textile market. “Provided political stability continues and uncertainty abates, growth should rise above 6% in FY15.”
He said the authorities’ programme continued to be suitably focused on maintaining fiscal prudence, consolidating debt management, strengthening the financial sector, and promoting growth and improving labour conditions.
