Balance of payments support to Bangladesh
Timeframe: Jan 2002 - May 2002
Norway has been requested by IMF to provide balance of payments (BOP) support to Bangladesh, which is facing a critical reduction in its foreign exchange reserves. The country is in urgent need of foreign exchange, including BOP support. This project assesses whether Norway should provide BOP support. It is argued that external conditions are the main explanatory factors for the current crisis and that Bangladesh will not move easily out of its present distress. Until a reform package is agreed upon, however, the CMI report (R2002:3) concludes that Norway should not provide BOP support.
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