IMF Staff Country Reports

Bangladesh: Third and Fourth Reviews Under the Extended Credit Facility Arrangement and the Arrangement Under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criterion, and Third and Fourth Reviews Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh

June 26, 2025

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International Monetary Fund. Asia and Pacific Dept "Bangladesh: Third and Fourth Reviews Under the Extended Credit Facility Arrangement and the Arrangement Under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criterion, and Third and Fourth Reviews Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh", IMF Staff Country Reports 2025, 150 (2025), accessed June 28, 2025, https://doi.org/10.5089/9798229015714.002

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Summary

The summer 2024 uprising has significantly disrupted the IMF-supported program, necessitating a recalibration. Massive protests led to the ousting of the previous government, the formation of an interim cabinet, and the replacement of Bangladesh Bank’s Governor. While some stability has returned, political tensions, especially around the timing of the upcoming elections, persist. Amid rising trade barriers and heightened global uncertainties, the economic outlook has worsened, with an emerging financing gap and increasing stress in the banking sector. Against this backdrop, the authorities have requested augmentation of access and extension of the Fund-supported program.

Subject: Climate change, Commercial banks, Currency markets, Environment, Exchange rate arrangements, Exchange rates, External debt, Financial institutions, Financial markets, Financial sector policy and analysis, Financial sector stability, Foreign exchange, Public debt, Revenue administration

Keywords: Climate change, Commercial banks, Currency markets, Exchange rate arrangements, Exchange rates, Financial sector stability

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