Positive Talks With IMF on New Loan Programme; Bangladesh May Receive $4.5 Billion

PNN News Desk | Dhaka

Negotiations between Bangladesh and the International Monetary Fund (IMF) over a new loan programme are progressing positively, Finance Minister Amir Khosru Mahmud Chowdhury has said. According to him, the two sides have reached an understanding on most of the proposed conditions. Bangladesh could potentially receive approximately $4.5 billion under the new programme.

The finance minister made the remarks on Monday (October 12) after a meeting with the World Bank on the sidelines of the annual meetings of the IMF and World Bank in Thailand.

The conference is being held at the Queen Sirikit National Convention Center in Bangkok, the Thai capital, bringing together policymakers to discuss key issues affecting the global economy. The event will continue until October 18. More than 15,000 delegates from 191 countries, including central bank governors, finance ministers and development partners, are participating.

According to officials at the Ministry of Finance, discussions and negotiations with the IMF over a new loan programme have been underway since May, following the cancellation of the previous loan agreement. Those negotiations have opened the possibility of securing a new loan worth $4.5 billion.

However, officials said the IMF remains firm on several conditions attached to the proposed programme. The organisation is emphasising reforms in the banking and revenue sectors, reductions in government subsidies across various sectors, greater transparency in official statistics and clear plans to address the effects of climate change.

Drawing on experience from the previous programme, the IMF is giving particular attention to these issues when determining the conditions for the new loan. Although the two sides have reached an understanding on most conditions, resolving the remaining differences before finalising the agreement remains a key part of the negotiations.

If finalised, the new loan agreement could support Bangladesh’s external financing and economic reform initiatives. However, details regarding loan approval, disbursement schedules and the final conditions have not yet been disclosed.