Yunus to discuss expanded IMF support for Bangladesh

Chief Adviser Prof Muhammad Yunus is scheduled to meet today with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), to explore how the lender could extend further assistance to Bangladesh and what form that support might take.

The meeting follows a correspondence earlier this year. On May 1, Yunus wrote to Georgieva expressing appreciation for the $4.7 billion loan package and noting Bangladesh’s progress in carrying out the required reforms. Georgieva, in a May 19 reply, reaffirmed the IMF’s readiness to continue backing Bangladesh and welcomed the idea of additional dialogue, according to finance ministry officials.

Bangladesh has so far secured $3.3 billion in five instalments from the programme, which originally stood at $4.7 billion but was later expanded to $5.3 billion. The package combines Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF) funding, with two tranches still pending.

Officials indicated that Yunus could use the talks to request more resources to help Bangladesh cope with climate risks. Finance Adviser Salehuddin Ahmed has estimated that the country will need roughly $30 billion to confront climate-driven disasters effectively.

An IMF assessment published in June 2024 highlighted Bangladesh’s extreme vulnerability to natural calamities, projecting that cyclone-related damage could reach up to 6 percent of GDP by 2050. Such shocks, it warned, could disrupt growth, weaken the currency, deplete reserves, and push up public debt — with the poorest citizens bearing the greatest burden.

To address these threats, the Bangladesh Climate Development Platform (BCDP) was launched earlier this year to scale up financing, while IMF’s RSF has already acted as a key instrument for mobilising new climate funds. However, World Bank data show that current government spending on climate action remains under 1 percent of GDP — far below the 3–4 percent needed annually over the next 15 years.

Beyond financial aid, the IMF is also supporting reforms in taxation and the banking system. In line with its recommendations, Bangladesh Bank has already initiated a merger process involving five Shariah-based lenders: First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Exim Bank.