The funding comes underneath a brand new programme which goals to assist weak middle-income international locations and island states.
The Worldwide Financial Fund’s (IMF) government board has accredited a assist programme for Bangladesh price $4.7bn at present change charges, making the South Asian nation the primary to entry its new Resilience and Sustainability Facility (RSF).
The funding introduced on Monday contains $3.3bn underneath the IMF’s Prolonged Credit score Facility and Prolonged Fund Facility programmes and $1.4bn underneath the brand new RSF, which goals to assist weak middle-income international locations and island states.
The board approval of a workers settlement reached final November permits the instant disbursement of about $476m to Bangladesh, the IMF mentioned.
The IMF mentioned the 42-month borrowing package deal “will assist protect macroeconomic stability, defend the weak and foster inclusive and inexperienced progress”.
The fund mentioned it contains reforms centered on creating fiscal house to allow higher social and developmental spending, strengthening Bangladesh’s monetary sector, boosting fiscal and governance reforms, and constructing local weather resilience.
The IMF introduced the brand new RSF facility in October final yr to offer coverage assist and reasonably priced longer-term financing for low-income and weak middle-income international locations along with the present lending toolkits that these international locations had entry to. RSF amenities include a 20-year maturity and a 10-1/2-year grace interval throughout which no principal is repaid.
The funding from the RSF will assist assist the nation’s local weather change adaptation and mitigation efforts, the IMF mentioned.