Bangladesh: Third and Fourth Reviews Under the Extended Credit Facility Arrangement and the Arrangement Under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteri

The summer 2024 uprising has significantly disrupted the IMF-supported program, necessitating a recalibration. Massive protests led to the ousting of the previous government, the formation of an interim cabinet, and the replacement of Bangladesh Bank’s Governor. While some stability has returned, political tensions, especially around the timing of the upcoming elections, persist. Amid rising trade barriers and heightened global uncertainties, the economic outlook has worsened, with an emerging financing gap and increasing stress in the banking sector. Against this backdrop, the authorities have requested augmentation of access and extension of the Fund-supported program.