Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

IMF - International Monetary Fund : Press Release: IMF Completes Third Review under the Extended Credit Facility Arrangement with Bangladesh, and Approves US$140.4 Million Disbursement

12/02/2013 | 12:15pm US/Eastern
Recommend:
0
Press Release No. 13/479
December 1, 2013

On November 27, 2013, the Executive Board of the International Monetary Fund (IMF) completed the third review of Bangladesh's economic program under a three-year arrangement supported by the Extended Credit Facility (ECF). The Executive Board's decision enables the immediate disbursement of an amount equivalent to SDR 91.423 million (about US$140.4 million) to Bangladesh. This would bring total disbursements under the arrangement to SDR 365.692 million (about US$561.4 million).

The three-year ECF arrangement for Bangladesh was approved by the Executive Board on April 11, 2012 (see Press Release No. 12/129) for a total amount equivalent to SDR 639.96 million (about US$982.5 million), or 120 percent of quota.

After the Board discussion, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, said:

"Progress on macro-stabilization and structural reforms has been strong under Bangladesh's policy program, supported by the Extended Credit Facility. International reserves have risen and underlying inflation is moderating. Progress has also been made in lowering subsidies, raising development spending, improving public financial and debt management, and strengthening financial supervision. However, strikes and uncertainty associated with the upcoming elections, an attendant slowdown in growth, and an expected transition in the garment sector to higher costs and upgraded labor and safety standards, pose challenges ahead. To manage them, it is important to persevere with a strong policy framework in the run-up to national elections and beyond.

"Fiscal policy should remain prudent, while providing space to raise public investment and social-related spending. Further reforms to modernize the tax system and generate additional resources for development spending over the medium term are critical, with implementation of the new value added tax a priority. Public financial management needs strengthening, focused on treasury cash management, state-owned enterprise financial reporting, and debt management practices.

"Restrained monetary policy has curbed inflationary pressures and supported reserve accumulation. The stronger external position could allow scaling back foreign exchange intervention while continuing sterilization efforts.

"Bangladesh Bank should fully utilize its enhanced supervisory powers to bolster financial stability. The program for reforms at the state-owned commercial banks should be firmly advanced, backed by recapitalization.

"Reforms to achieve sustained and inclusive growth should aim at further removing critical infrastructure bottlenecks, while streamlining the trade regime and foreign exchange regulations to improve the business climate. Advancing initiatives to strengthen labor and garment factory safety conditions is also critical, while the targeting of social safety net programs needs to be further improved.

distributed by
Recommend :
0
React to this article
Latest news
Date Title
2m ago RESEARCH AND MARKETS : Plant Life Extension (PLEX) and Plant Life Management (PLIM) for Nuclear Reactors - Global Market Size, Competitive Landscape and Key Country Analysis to 2025
3m ago UK MORNING BRIEFING : Renishaw And Capita Lead London Shares Higher
3m ago CHINA WINDPOWER : Positive Profit Alert
3m ago SUN HUNG KAI PROPERTIES : SHKP wins eleventh Yahoo! Emotive Brand Award
3m ago ASIAN GROWTH PROPERTIES : Announcement: Disclosure of the Directors' Deemed Shareholding Interests
3m ago REALTECH : announces changes to its supervisory board
4m ago TRAIN TRAVEL : Travel Agents Worldwide To Sell More Rail Passes, Spanish Night Train E-Tickets And London's Oyster Cards Following Promotions And News From World Train Travel
5m ago SES Awarded Hosted Payload Solutions ID/IQ Contract
7m ago BAXTER : IV Sodium Chloride and Potassium Chloride Solutions Recalled: AttorneyOne Monitor and Keep Consumers Informed
7m agoDJFrench Business Sentiment Unchanged in July
Latest news
Advertisement
Hot News 
MARTIN CURRIE PACIFIC : Correction - Director/PDMR Shareholding
SERABI GOLD : Declaration of commercial production at Palito and second quarter operations update
RENISHAW : Strong pound hits UK engineer Renishaw's annual profit
SWATCH : Swiss franc strength dials down profit at Swatch
ABB : delivers strong order growth and cash in Q2
Most Read News
1d ago SAMSUNG ELECTRONICS : Apple revenue lags Street's view despite strong China growth
1d ago WHOLE FOODS MARKET : reg; creates 150 jobs in the Palm Desert community
1d ago MICROSOFT : sees end to Nokia losses, shares rise after hours
1d ago FIAT : Chrysler recalls older Jeep SUVs for ignition switch issues
1d ago ALBANY : Schumer, Gillibrand, Tonko Announce Nearly $4 Million to Rehabilitate Runway at Albany International Airport
Most recommended articles
6d agoDJU.S. Industrial Production-Historical
7m agoDJFrench Business Sentiment Unchanged in July
8m agoDJSTEEL AUTHORITY OF INDIA : India To Use ETFs To Sell State Shares Again
9m agoDJIBERDROLA : 1st Half Profit Down 13% on Tepid Demand, Subsidy Cuts
14m ago Economic issues such as fuel subsidies are the most urgent priorities that the new Indonesian president needs to tackle, says Anthony Nafte of CLSA.
Dynamic quotes  
ON
| OFF