The International Monetary Fund (IMF) reports that Bangladesh has requested a new assistance programme as it struggles with the economic fallout of the United States-Israel war on Iran.We take a look at what assistance Bangladesh has sought, the South Asian country’s history with the IMF and how the war has hit its economy.What has Bangladesh asked for?The IMF’s mission chief for Bangladesh, Ivo Krznar, announced on Tuesday that Bangladesh had requested a new IMF-supported programme.“IMF staff are in discussions with the authorities on their reform agenda and policy priorities,” Krznar said in a statement.“The IMF remains a committed partner to Bangladesh in its efforts to secure lasting macroeconomic and financial stability, strengthen resilience, and support strong, inclusive growth.”Neither side disclosed the size or precise terms of the requested financial aid package.However, in March, the government of Bangladesh said it was seeking $2bn in loans from various donors as it grappled with an energy crisis caused by the war on Iran.How badly has Bangladesh been hit by the Iran war?Energy crisisThe Iran war, which began on February 28 when the US and Israel launched strikes on Iran, has caused a worldwide energy crisis and sent fuel prices soaring. On April 8, a temporary ceasefire was reached, but a durable peace agreement remains elusive. Furthermore, the Strait of Hormuz – through which before the war one-fifth of the world’s oil and natural gas supplies were shipped, largely to Asian countries – remains under the control …
