The IMF announced Tuesday it has authorised the release of close to $700 million for Bangladesh after concluding it was making progress on programmes aimed at preserving macroeconomic stability.

The International Monetary Fund said in a statement that it had concluded the first review of two loan programmes, making around $690 million available to the South Asian country.

Bangladesh is navigating a challenging economic environment, according to the IMF, which said its economy had been buffeted by the knock-on effect of the war in Ukraine and high-interest rates in many countries around the world.

Its economic growth slowed to an annual rate of six percent in the fiscal year 2023, while inflation jumped to a decade high of 9.9 percent in the year to August, the IMF said.

“Bangladesh’s economy is navigating multi-faceted economic challenges,” IMF Deputy Managing Director Antoinette Sayeh said in a statement.

“Despite a difficult external environment, programme performance has been broadly on track, reflecting the authorities’ strong commitment,” she added.

Tuesday’s authorization brings the total disbursement to Bangladesh under the two programmes, approved in January 2023, to more than $1.1 billion.

Despite Bangladesh’s progress, Sayeh said more work needed to be done.

“Financial reforms should focus on addressing vulnerabilities in the financial sector by strengthening banking regulation, supervision, and governance,” she added.