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
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
React to this article
Latest news
Date Title
05:56a MICROCHIP TECHNOLOGY : Licenses EtherCAT®
05:51a GUOCO : Announcement - List of Directors and their Role and Function
05:50a MICHELIN CGDE : Celebrity chefs add wow factor to tiny school's cookery book project
05:50a MANCHESTER UNITED : Poyet fumes as wrong man sees red in Old Trafford loss ; MANCHESTER UNITED 2 SUNDERLAND 0
05:50a LLOYDS BANKING : Melanie's a star behind the scene of top TV hits
05:50a BRUNEL : Thank you for the care you gave me ; Your opinion today...
05:41a HSBC : New countries seek HSBC data and undeclared cash
05:41a VOLKSWAGEN : Disastrous road in Safi
05:41a SHANGHAI JIN JIANG INT HTL GRP : 01/03/2015 Announcements and Notices - INSIDE INFORMATION AC...
05:41a JES : Application for Extension of Time to Announce FY2014 Financial Results and to hold AGM
Latest news
Advertisement
Hot News 
ALPHATEC : posts 4Q loss
GIGA TRONICS : Entry into a Material Definitive Agreement, Unregistered Sale of Equity Securities, Financial Statements and Exhibits (form 8-K)
TCPI : is Evaluating Claims Filed on February 26th, 2015
OPTOS : Shares Surge Higher On Recommended Takeover Bid From Nikon
Weight Watchers Loses Money, Members -- 2nd Update
Most Read News
02/28 PAPA JOHN INT'L : Derby Festival tickets go on sale Monday
02/28DJBRITISH AMERICAN TOBACCO : Settles Flintkote Litigation
02/28 CISCO SYSTEMS : CSCO) Hits a New 52-Week High of $29.99
02/28 OLIMPIA REAL ESTATE : *A doctor on a mission*
02/28 TREMOR VIDEO : To Present at the Deutsche Bank Media, Internet & Telecom Conference
Most recommended articles
05:07a Despite Greece, euro zone is turning the corner
04:15a ECB braces for QE as others shift rates
03:37a China central bank steps up easing tempo as factory activity shrinks
03:36a China central bank steps up easing tempo as factory activity shrinks
01:45aDJSouth Korea Exports Fall 3.4% in February--Update
Dynamic quotes  
ON
| OFF