Bangladesh seeks $4.5 bln IMF loan as deficit widens, newspaper says.

Updated: Jul 29

Bangladesh has sought a $4.5 billion loan from the International Monetary Fund, the Daily Star newspaper reported on Tuesday, joining South Asian neighbours Pakistan and Sri Lanka in seeking help to cope with mounting pressure on their economies.

Known for its big garment-exporting industry, Bangladesh has sought the funds for its balance of payment and budgetary needs, as well as for efforts to deal with climate change, the Daily Star reported, citing documents it had seen.

The country's $416 billion economy has been one of the fastest-growing in the world for years, but rising energy and food prices because of the Russia-Ukraine war has inflated its import bill and the current account deficit.

The Daily Star said Finance Minister AHM Mustafa Kamal wrote to IMF Managing Director Kristalina Georgieva on Sunday. A senior finance ministry official, who did not want to be named, said the matter was indeed "being discussed" but declined to give details.

Source: Reuters

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