IMF Imposes New Conditions on Foreign Loans in Bangladesh

 Staff Reporter | PNN

For the first time, the International Monetary Fund (IMF) has imposed a cap on Bangladesh’s foreign borrowing. According to the conditions, Bangladesh can borrow a maximum of $8.44 billion in foreign loans during the current fiscal year.

In June, after releasing the fourth and fifth installments of Bangladesh’s loans amounting to $1.34 billion, the IMF published a ‘Country Report.’ The report set limits on the next loan installment under certain conditions.

The maximum borrowing per quarter has also been fixed: $1.91 billion for the first quarter, $3.34 billion by six months, $4.34 billion by nine months, and $8.44 billion for the entire fiscal year. Additionally, the IMF will monitor the foreign loan situation every three months.

Last fiscal year, the government borrowed $8.57 billion in foreign loans. In the first month of the current fiscal year, July, the country took $202.4 million in foreign loans. Under the IMF’s new conditions, the amount of borrowing must be slightly lower this year. In 2023, when $4.7 billion in loans was approved, no such limit was imposed.