IMF board approves $4.7 billion support program for Bangladesh

(Reuters) – The International Monetary Fund on Monday said its executive board approved a support program for Bangladesh worth $4.7 billion at current exchange rates, making the South Asian country the first to access its new Resilience and Sustainability Facility (RSF).

The funding includes $3.3 billion under the IMFs Extended Credit Facility and Extended Fund Facility programs and $1.4 billion under the new RSF, which aims to help vulnerable middle-income countries and island states.

The board approval of a staff agreement reached last November allows the immediate disbursement of about $476 million to Bangladesh, the IMF said.

The IMF said the 42-month borrowing package “will help preserve macroeconomic stability, protect the vulnerable and foster inclusive and green growth.”

The Fund said it includes reforms focused on creating fiscal space to enable greater social and developmental spending, strengthening Bangladeshs financial sector, boosting fiscal and governance reforms and building climate resilience.

The funding from the RSF will help support the countrys climate change adaptation and mitigation efforts, the IMF said.

(Reporting by Ismail Shakil; Editing by Tim Ahmann and Deepa Babington)