IMF approves US$987 million loan to Bangladesh

Bangladesh announced that by the end of the year, the government will introduce a price adjustment formula for oil products in the domestic market. The creation of a new price adjustment formula is part of Sri Lanka’s loan commitment with the International Monetary Fund (IMF) and will fully reflect the changes in international oil prices. The IMF recently approved a US$987 million three-year loan to the Bangladeshi government. In a letter to IMF Managing Director Christine Lagarde on March 27, Bangladesh’s Finance Minister Abul Maal Abdul Muhith said, “Notwithstanding significant fuel and electricity prices adjustments over the past year, we recognize that further adjustments to energy prices are likely necessary in 2012, given projected import costs and available budgetary financing. The country sought the interest-free 10-year loan to pay off debts, used mainly to pay off oil product imports. (April 13, 2012)