Bangladesh secures $4.7b in IMF loans

The Executive Board of the International Monetary Fund has approved $4.7 billion in loans for Bangladesh at the request of the government, helping the country build a buffer against depleting forex reserves. Bangladesh secured about $3.3 billion under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. This approval enables the immediate disbursement of about $476 million, bdnews24.com reported early Tuesday citing an IMF statement. The IMF Executive Board also approved about $1.4 billion under the newly created Resilience and Sustainability Facility (RSF). Bangladesh is the first Asian country to access the RSF. Bangladesh’s robust economic recovery from the pandemic has been interrupted by Russia’s war in Ukraine, leading to a sharp widening of Bangladesh’s current account deficit, depreciation of the taka and a decline in foreign exchange reserves, the IMF said.  “The authorities have taken on a comprehensive set of measures to deal with these latest economic disruptions. The authorities recognise that in addition to tackling these immediate challenges, long-standing structural issues and vulnerabilities related to climate change will also need to be addressed to accelerate growth, attract private investment, enhance productivity, and build climate resilience,” the Washington-based lender said. The IMF-supported programme under the ECF/EFF arrangements will help preserve macroeconomic stability and prevent disruptive adjustments to protect the vulnerable, while laying the foundations for strong, inclusive, and environmentally sustainable growth.

Source: https://thefinancialexpress.com.bd/economy/bangladesh-secures-47b-in-imf-loans-1675138334

Despite downturn 3 dozen listed firms plan Tk7,500cr investment

Despite domestic and external economic headwinds, some three dozen manufacturing companies listed on the Dhaka Stock Exchange are sticking to their guns and going ahead with expansion plans announced in 2022. While demand and growth have both dampened, these companies have made it clear that they aren’t going to turn back from the combined investments of nearly Tk7,500 crore – up by 104% from 2021, according to data from the Dhaka bourse analysed by The Business Standard. With an eye on the future, as most of these investments will pay dividends a few years from now, businesses are optimistic about the economic gloom being lifted and want to be prepared for a demand surge. Eight of these companies will invest at least Tk100 crore each or more to expand their operations. These new investments will also create employment for several thousand people. RAK Ceramics (BD) Limited, a UAE-Bangladesh joint venture, is investing Tk902 crore in building two new factories – for tiles and faucets – to meet growing market demand in the future.

Source: https://www.tbsnews.net/economy/despite-downturn-3-dozen-listed-firms-plan-tk7500cr-investment-576930

AB Bank disburses agri loans thru smart cards

AB Bank disbursed agricultural loans to small and marginal farmers through smart cards in Barishal. Serniabat Sadiq Abdullah, mayor of Barishal City Corporation, attended the agricultural loan distribution programme organised by AB Bank at Abdur Rab Serniabat Stadium in Barishal, said a press release. Tarique Afzal, president and managing director of AB Bank, presided over the event, where Swapan Kumar Das, executive director of Bangladesh Bank’s Barishal office, Shawkat Osman and Harun-Ur-Rashid, additional directors of the Department of Agricultural Extension, were present.  

Source: https://www.thedailystar.net/business/economy/news/ab-bank-disburses-agri-loans-thru-smart-cards-3234821