IMF Reaffirms Commitment to Bangladesh Amid Political Chaos

The International Monetary Fund remains committed to Bangladesh following the prime minister's resignation and ensuing protests. The president has dissolved parliament to pave the way for new elections. Multilateral lenders, including the IMF, World Bank, and Asia Development Bank, are crucial to Bangladesh's economy, contributing significantly to its GDP.

The International Monetary Fund (IMF) reaffirmed its commitment to Bangladesh and its citizens after the resignation of Prime Minister Sheikh Hasina following massive protests that led to hundreds of deaths.

On Tuesday, Bangladesh's president dissolved parliament, facilitating new elections. This political turmoil has caught the attention of global lenders whose funding constitutes a significant portion of Bangladesh's GDP. Multilateral agencies such as the IMF, World Bank, and Asia Development Bank play crucial roles in supporting the country's financial stability.

Earlier this year, the IMF sanctioned a $4.7 billion loan to Bangladesh. The IMF expressed its grief over the loss of lives and stated its ongoing support for Bangladesh's economic stability and inclusive growth. Meanwhile, the World Bank, with $2.85 billion in commitments, is evaluating the situation's impact on its lending operations but remains dedicated to the nation's development.

With no foreign currency bonds and minimal short-term external debt, Bangladesh's economic response to the political upheaval has been relatively contained. However, issues like high unemployment and inflation around 10% have exacerbated public discontent. Observers note that any military coup could jeopardize future international financial support.

(With inputs from agencies.)