The International Monetary Fund IMF announced on Wednesday that it has agreed to expand its existing multi-billion-dollar loan programme with Bangladesh and to release 1.3 billion in funds.
This decision comes as the IMF projects a significant slowdown in Bangladeshs export-dependent economy, forecasting a growth of only 3.8 per cent this year.
This lower growth rate presents an immediate challenge for the new government led by Muhammad Yunus, who assumed power last year following the removal of former autocratic Prime Minister Sheikh Hasina.
The predicted growth rate would be the lowest in over two decades, excluding the Covid-19 pandemic period, according to IMF data.
Citing significant macroeconomic challenges, IMF Bangladesh mission chief Evan Papageorgiou stated that the authorities requested an increase in the existing loan programme by approximately 762 million.