IMF approves SDR 67.28 million (US $97.2 million) aid to B'ldesh under PRGF

04 Feb '06

1 min read

International Monetary Fund yesterday approved SDR 67.28 million (about US$97.2 million) to Bangladesh yesterday.

In an official release, IMF states that its Board approved Bangladesh's request for waivers for the nonobservance of quantitative and structural performance criteria.

Takatoshi Kato, IMF Deputy Managing Director and Acting Chair in a discussion said, " Bangladesh's economy has performed well under the PRGF-supported program. The economy has continued to expand, and inflation has been kept in check. Nonetheless, Bangladesh remains a country with a high degree of poverty, serious capacity constraints, and heavy reliance on donor inflows."

While commending the country for following prudent fiscal policies, Kato particularly pointed out that "The flexible exchange rate regime has worked well for Bangladesh, and should help mitigate the potential impact of the removal of Multifiber Arrangement (MFA) quotas and high oil prices, thereby safeguarding the balance of payments position."

"Further trade reform will contribute to growth momentum and help bolster confidence in the export sector, particularly following the phasing out of MFA quotas. In light of adverse implications on government revenue of further trade reform, the authorities will need to protect revenue through reforms in revenue policy and administration," added Kato.

International Monetary Fund

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