IMF says Bangladesh loan program on track


Published — Thursday 6 December 2012

Last update 7 December 2012 8:51 am

| نسخة PDF Print News | A A

WASHINGTON: The International Monetary Fund said Bangladesh was making progress with reforms under an IMF loan program and may be eligible for the second aid payment.
An IMF mission to Dhaka met with senior Bangladeshi officials in the first review of the country's performance under a $987 million Extended Credit Facility granted in April.
Bangladesh's performance under the loan program so far has been generally sound, said IMF mission leader David Cowen.
"Quantitative targets are broadly on track, with all performance criteria met at end-June 2012 — the first test date under the ECF," he said in a statement.
Under the three-year loan deal, Bangladesh has pledged wide-reaching structural reforms to get its economy back on track and ease long-term poverty.
Bangladesh received some $141 million in an initial disbursement in April.
Cowen noted progress on structural measures as well as commitments by the government on several measures, including containing the budget deficit to 4.5 percent of gross domestic product in fiscal 2013.
The government also pledged to boost efforts to curb subsidy costs, particularly through a fuel price adjustment formula, and to take steps to lessen the negative impact on the most vulnerable.
The IMF Executive Board is expected to complete its review in January, which would make the second disbursement of some $141 million available to Bangladesh.
The government sought the IMF aid after rising global oil prices delivered a double whammy, spurring inflation and taking scarce foreign currency out of the country.
Under the IMF agreement, the government must hike prices of oil, power and fertilizer to bolster the country's shaky balance of payments. But poor farmers have relied on deep subsidies for decades.
"Despite global headwinds, Bangladesh's economy performed well in FY12, with preliminary estimates pegging growth at 6.3 percent," Cowen said.
The IMF projects GDP growth of about 6 percent in the current fiscal year, citing external uncertainties and the broader global slowdown.

What's happening around Saudi Arabia

MAKKAH: Low-cost Haj packages are no longer available as the registration process has been completed.Announcing it, Abdulrahman bin Ali Al-Nafei, assistant deputy minister of Haj, said domestic Haj operators have completed registering names of pilgri...
JEDDAH: An African expat woman is being investigated for torturing her baby to death by pouring boiling water on her. The motive behind the vicious attack is unknown.The Board of Investigation and Prosecution in Jeddah has charged the woman with semi...
RIYADH: Over five million Overseas Filipinos Workers (OFWs), including more than one million in Saudi Arabia, observed “zero remittance day” on Friday, in protest against the random checking of boxes sent by them to their families back home by the Cu...
JEDDAH: Security authorities have arrested 45 people from different parts of the Kingdom for Daesh links in the past 10 days. Forty of the suspects, accused of terrorism, are Saudis. Others are 2 Yemenis, an Egyptian, a Palestinian, and a national of...
RIYADH: The Ministry of Health announced on Friday that two more people were infected with the Middle East Respiratory Syndrome (MERS) coronavirus. While no deaths were announced, the virus has already killed 26 people in just two weeks, from Aug. 16...
RIYADH: The government and courts have issued 35,010 penalties against citizens and expatriates for violating the country’s residency laws including fines and jail terms.Citizens and expatriates across the Kingdom were penalized for transporting, har...

Stay Connected