Bangladesh is less vulnerable to the COVID-19 pandemic as its debt-related risks are in a safe zone.
The Washington-based IIF reached the conclusion while analysing 73 poor economies, which may need debt service suspension initiative support.
The initiative is a G20 scheme for a time-bound suspension of loan repayment for countries that seek it.
Under the initiative, the G-20 could free around US$20 billion by suspending payments for the 73 poorest nations.
Bangladesh is one of the 73 nations. The Institute of International Finance, or IIF, made some 11 categories. Bangladesh is in the green zone of six categories.
The green zones statistically called higher percentile or 75th percentile.
The country is in the higher percentile in global health index, foreign exchange reserve in terms of monthly import payment, change in budget deficit, current account balance, tourism contribution to the employment and share of bilateral creditors in long term public and publicly-guaranteed external debt service. While Bangladesh positions in the red zone or lower percentile statistically in the International Monetary Fund's share in total debt service and share of multilateral creditors in long-term public and publicly-guaranteed external debt.
It, however, has been placed in the yellow zone or between 25th and 75th percentile in three areas.
Such categories are: public debt management, remittance flow and total external debt service.
"We are less vulnerable amid the COVID-19 as our position in most cases is positive," Dr Ahsan H Mansur, executive director at the Policy Research Institute of Bangladesh (PRI) said, adding the country may not avail the G-20 package.
He said Bangladesh remained in higher percentile in the global health index as the lower mortality rate and longevity of people are higher.
"The hospital scenario is different. I think this is in green due to lower infant mortality, hand washing programme, and most credit goes to the NGOs," Dr Mansur said.
Bangladesh falls green on six, red on two and yellow on three indicators.
Some of the weaknesses such as low exposure to international tourism and the lack of access to international financial markets have turned out to be advantages in the post-Covid-19 world, said economist Dr Zahid Hussain.
He notes that disruption in international travel does not affect Bangladesh and low non-concessional debt has kept debt-to-GDP ratio and external debt service manageable.
Bu he was surprised at the country's favourable position in the Global Health Index.
"This is hard to accept because of known weaknesses in all areas covered by the index-prevention, detection and reporting, rapid response, health system, compliance with international norms and the risk environment. Covid-19 has exposed these weaknesses most glaringly," he added.
Bangladesh's favourable position on these indicators means it will get low priority in accessing the debt service suspension initiative, Mr Hussain said.
People familiar with the situation said Bangladesh will not join the G-20 package.
London-based the Economist said Bangladesh is the ninth strongest out of 66 economies in terms financial fragility.
The IIF is a global association of financial institutions. It was created 1983 in response to the international debt crisis in the early 1980s.
