The $4.5 billion loan proposal of Bangladesh is expected to be approved at a meeting of the International Monetary Fund's (IMF) executive board scheduled for the last week of January.

"The IMF executive board is expected to consider approving the loan programme with Bangladesh on 30 January," revealed IMF Deputy Managing Director (DMD) Antoinette Monsio Sayeh via a press statement on Monday (15 January).

Antoinette Monsio Sayeh is currently on a five-day visit to Bangladesh.

Bangladesh and the IMF recently reached a staff-level agreement under the Extended Credit Facility, Extended Fund Facility, and the IMF's new Resilience and Sustainability Facility (RSF), to support the authorities' home-grown reform agenda. 

She observed that the macroeconomic policies taken by the Bangladeshi authorities in recent years have helped keep inflation stable, debt-to-GDP ratio low, and external buffers adequate.

"I am very pleased to have had the opportunity to meet with Prime Minister Sheikh Hasina today, and Finance Minister Mustafa Kamal and Bangladesh Bank Governor Abdur Rouf Talukder yesterday. 

"I congratulated them on Bangladesh's impressive economic growth and social development in last decades, which have allowed steady progress in poverty reduction and significant improvements in living standards," she added.

"Just like countries around the world, Bangladesh is now dealing with the impact of global shocks – first from the pandemic and then from the ongoing war in Ukraine. 

"We discussed the impact of these shocks on Bangladesh's economy, and I welcomed Bangladesh's comprehensive set of measures to deal with them – including their focus on ensuring protection for the vulnerable during these difficult times," the IMF DMD furthered.

She said, "In our discussion [with the Bangladesh side], we focused on the key elements of this programme, including the long-standing challenges of raising tax revenues, and building a more efficient financial sector. 

"Reforms in these areas, combined with measures to facilitate private investments and export diversification will help create conditions to make Bangladesh's economy more resilient and support long-term, inclusive and sustainable growth."

Stating that discussions were made about Bangladesh's plans to address the longer-term challenges related to climate change that could threaten macroeconomic stability, Antoinette Monsio Sayeh explained, "The IMF's RSF aims to provide affordable, long-term financing to support Bangladesh's climate investment needs, catalyse climate financing, and reduce balance of payment pressures from import-intensive climate investment."