Corona has severely affected the economy of Bangladesh. On the one hand, as domestic demand has declined, on the other hand, exports are also suffering.
In this situation, the International Monetary Fund (IMF) is providing emergency assistance of 73 crores 20 lakh to Bangladesh to meet the balance of payments and revenue demand. This emergency assistance is being provided under the Rapid Credit Facility and the Rapid Financing Instrument.
A meeting of the IMF’s board of directors approved the offer on May 29. According to the IMF, they are closely monitoring the economy of Bangladesh. If necessary, they will provide more assistance to Bangladesh. The agency also said it would formulate transparency and accountability measures to ensure that emergency aid money is used properly.
In a statement, the IMF said, “The impact of COVID-19 has severely affected Bangladesh’s two main foreign exchange earning sectors — garment exports and remittances.” On the one hand, Bangladesh is trying to stop the spread of the disease, on the other hand, its impact is slowing down the economy. The revenue deficit is increasing.
There may also be a deficit in the balance of payments. The IMF believes that this emergency assistance will help Bangladesh address its funding deficit. As well as working to prevent the spread of the disease and get more support from the international community.
