Govt seeks $1b from IMF, World Bank

26 Mar 2020 10:37 AM
Bangladesh yesterday sought $1 billion on support from the International Monetary Fund and the World Bank as the united states looks to aid its persons, businesses and industries reeling from the coronavirus pandemic.

The federal government also requested the global multilateral loan providers to stand by Bangladesh so that it could tackle coronavirus, which is progressively getting worse in the united states.

"A single region can't tackle this type of disastrous situation alone. We wish to earnestly demand the World Bank and the IMF that they might ensure greater cooperation considering the risky circumstance facing Bangladesh," Financing Minister AHM Mustafa Kamal informed the global lenders in a video meeting yesterday.

The government expects to get $750 million from the IMF and $200 million from the WB.

The coronavirus stands to get rid of 1.1 % of Bangladesh's GDP as per a projection of the Asian Creation Bank (ADB), the minister explained.

"It came at the same time when Bangladesh is targeting to attain the Sustainable Expansion Goals and become a higher middle-income country by 2030," said a statement from the finance ministry quoting him.   

If the pandemic prolongs, the global monetary growth may fall to at least one 1.5 per cent.

Bangladesh has already began to feel heat of the coronavirus. "We come to mind that the Covid-19 crisis may package multi-faced blows to your economy," Kamal said.

Garment shipments, Bangladesh's primary export earner, are appearing influenced following the fall in demand for apparel items due to lockdown in america and Europe. The country's infrastructure tasks are set to face delays.

Remittance sent by migrant employees have kept the economy dynamic somewhat so far, however the flow would find negative impact soon seeing that a substantial number of migrant employees returned to Bangladesh because of outbreak of the virus, the minister said.

Changyong Rhee, IMF's director for Asia Pacific; Hartwig Schafer, vice-president of the WB for South Asia; Nena Stoiljkovic, vice-president of the International Finance Company for global partnerships; and Ceyla Pazarbasioglu, vice-president of the WB for equitable progress, finance and institutions, as well spoke during the video-conferencing.

Abu Hena Md Rahmatul Muneem, chairman of the National Plank of Earnings; Md Ashadul Islam, senior secretary of the Financial Institutions Division; Abdur Rouf Talukder, financing secretary; and Fatima Yasmin, secretary of the Economic Relations Division, had been present.