Bangladesh becomes 60th nation to receive IMF pandemic aid

• The outbreak "is severely affecting the two main sources of Bangladesh's external earnings, exports of ready-made garments and remittances."
• "Together with the measures to contain the spread of the virus in the country, the outbreak is expected to result in a significant slowdown of economic growth and the emergence of fiscal and balance of payments needs."

WASHINGTON: The IMF approved a $732 million emergency pandemic loan for Bangladesh on Friday, the 60th loan the crisis lender has approved since COVID-19 began undermining the global economy.

The outbreak "is severely affecting the two main sources of Bangladesh's external earnings, exports of ready-made garments and remittances," IMF Deputy Managing Director Antoinette Sayeh said in a statement.

"Together with the measures to contain the spread of the virus in the country, the outbreak is expected to result in a significant slowdown of economic growth and the emergence of fiscal and balance of payments needs."

It was the latest disbursement under the IMF's Rapid Credit Facility (RCF), which is aimed at the world's poorest nations and has been doubled in size to quickly dispense aid to those vulnerable to the economic effects of shutdowns to contain the outbreak.

In addition to increasing health expenditures, the government has focused on expanding food distribution and cash transfer programs to vulnerable populations, ensuring the payment of wages in export-oriented industries, and facilitating the provision of working capital to businesses and farmers, the IMF said.