Image: Reuters Berita 24 English - According to Krishna Srinivasan, director of the IMF's Asia and Pacific Department, Bangladesh reque...
 |
| Image: Reuters |
Berita 24 English - According to Krishna Srinivasan, director of the IMF's Asia and Pacific Department, Bangladesh requested the International Monetary Fund to begin discussions on a fresh loan under the creditor's Resilience and Sustainability Trust (RST), which is intended to help nations achieve sustainable growth.
The $416 billion economy of Bangladesh is the first in Asia to submit such a request to the Washington-based lender as it aims to increase its focus on ways to lessen the effects of climate change.
"It is a cooperative effort since the RST also includes a (higher credit tranche) programme. The sums will need to be negotiated later "Reuters was told by Srinivasan. This means that in order to access this new form of financing, Bangladesh will need a regular IMF-supported programme, such as a stand-by agreement or an extended fund facility.
Climate change and pandemic preparedness are two fundamental developments that will be addressed by this facility, he said. "One would hope that other nations would utilise this tool as well."
RST funds are restricted to a maximum of $1 billion or 150 percent of Bangladesh's quota.
According to a Tuesday report in the local newspaper The Daily Star, Bangladesh is requesting a $4.5 billion loan from the IMF.
In October, the IMF anticipates starting to make loans out of the RST. According to the fund's website, low-income and vulnerable middle-income countries can apply for the funding, which was distributed through the use of special drawing rights from powerful external partners.
The loans will mature in 20 years and have a 10-and-a-half-year grace period.
Srinivasan said, "We would hope that it is one among several to come down the line.
