Bangladesh saves IMF

IMF Executive Board Approves US$217.7 million in Emergency Assistance for Bangladesh;

The Executive Board of the International Monetary Fund (IMF) today approved SDR 133 million (about US$217.7 million) in emergency assistance to Bangladesh to assist the government's efforts to deal with the impact of severe damage from a November 2007 cyclone that had followed severe monsoon-related flooding.

Cyclone Sidr and two preceding floods resulted in at least 4,400 deaths and disrupted the lives of millions of people in one of the poorest and most vulnerable regions of the country. Total damage, mainly to agriculture, housing and infrastructure, is estimated at US$2.7 billion, or 3.7% of Bangladesh's GDP. The IMF's emergency assistance will support Bangladesh's international reserve position that has been put under pressure in the face of a sharp rise in disaster-related imports, including large volumes of food....

"The government has indicated their intention to maintain macroeconomic stability and pursue important reforms in the areas of revenue administration and policy, expenditure management, energy pricing, and state-bank reform," Mr. Kato said.