IMF

The IMF says it is ready to help Bangladesh meet its financial needs after protests led to a toppling of the government last month, a spokesperson for the Fund said Thursday, (September 12) in Washington, D.C.

The head of Bangladesh’s interim government said that they would be seeking $5 billion in support from the IMF and other sources to rebuild foreign currency reserves.

“We remain, fully committed to working with Bangladesh, and to in support of, of the people. Within the context of the IMF program, we will continue to work closely with the authorities, to help, advance the, the reform agenda. And, of course, as part of the upcoming mission, the team will be assessing all of the economic developments and any potential financing needs,” IMF head of communications Julie Kozack told reporters.

Also announced, the board of the International Monetary Fund will meet on September 25 to discuss the $7 billion program agreed in July with Pakistan.

“This new EFF arrangement, that will be subject to board approval, follows the successful implementation of the 2023 nine-month standby arrangement. Consistent policymaking has supported, economic stability in Pakistan, most notably a resumption of growth, a significant disinflation, and a significant increase in the country’s international reserves.”

Earlier in the day Prime Minister Shehbaz Sharif said that “friendly” countries have helped Pakistan meet requirements necessary to secure an IMF bailout. And the IMF confirmed that was the case.

Also announced, an International Monetary Fund team is currently in Kenya to review the nation’s $3.6 billion funding program.

The team is in Kenya for “a fact-finding mission, and as part of our ongoing and constructive dialogue with the Kenyan authorities to find a balanced path forward,” Kozack said at a briefing on Thursday. 

“For Kenya, the goal of the program is to help establish sound macroeconomic fundamentals, which we see as crucial for fostering sustainable and inclusive growth, as well as for generating jobs, especially for, young Kenyans,” said Kozack. 

The much-awaited appraisal was thrown off schedule when Kenyans took to the streets to protest against planned taxes that left more than 60 people dead. Kenya has been forced to widen its budget deficit by 28% after dropping the contentious tax plans.

“The program includes initiatives, to improve governance and transparency and to ensure the proper use… They ensure the responsible use of public funds. But it is also important that these policies go through a process of broad consultation so that they can gain, businesses public support. And we’re currently working with the authorities to ensure that the objectives of the program can be met,” Kozack explained regarding safeguards.

A copy of the full transcript is available at IMF.org.

To see video go to: HERE