IMF loan will have conditions Bangladesh must meet: Finance minister

Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh will have to fulfil certain conditions to receive loan assistance from the International Monetary Fund (IMF).

He said discussions had been held with the IMF on a new programme. “There will be conditions attached to the loan, and we will have to fulfil them. Some issues will be resolved through discussions and mutual agreement,” he said.

The minister made the remarks after a meeting with IMF Deputy Managing Director Nigel Clarke in Bangkok today (15 October). He said discussions on the new programme were progressing positively.

However, further talks would be needed to determine the conditions under the programme and how they would be met. Some issues would be resolved through mutual agreement between the two sides, he added.

The finance minister said the IMF had observations on several issues, including the banking sector, the tax-to-GDP ratio, bank recapitalisation and macroeconomic stability. Bangladesh agreed with the IMF’s observations on these matters, and many of the issues had already been addressed, he added.

Asked about the credibility of reforms, the minister said Bangladesh also had some observations. He reiterated that the IMF had concerns about the banking sector and the tax-to-GDP ratio, adding that the two sides agreed on these issues.

The finance minister also said the IMF was satisfied with Bangladesh’s recent economic progress. Despite global challenges, including the war in the Middle East, the organisation had expressed satisfaction with the country’s progress following the budget, he added.

He said Bangladesh would continue working in partnership with the IMF and other multilateral development partners, including the World Bank. Discussions with these organisations would continue to support the country’s future economic development.