Govt expects to finalise IMF talks by January

Detailed summary

The government expects to finalise its discussions with the International Monetary Fund (IMF) by January next year, as it seeks a broader financing programme involving…

The government expects to finalise its discussions with the International Monetary Fund (IMF) by January next year, as it seeks a broader financing programme involving international development partners, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

“Work is underway with the IMF. Working groups on both sides are working on it, and we hope to complete the process by January,” he told reporters at the National Board of Revenue (NBR) headquarters in Agargaon.

The minister said the government was not looking at the negotiations solely as a means of securing another loan but as part of a broader financing package.

Bangladesh was working with the IMF, the World Bank, the Asian Development Bank and the Islamic Development Bank on the financing package, he said. The government was also exploring bilateral financing and bond issuances.

Asked whether the negotiations would result in a fresh IMF loan, Khosru said the programme would guide the government’s course of action in coordination with development partners.

“The working groups are working on the programme with the IMF, and it will be completed in due time,” he said.

The current BNP-led government decided in May to leave the existing IMF programme eight months before its scheduled expiry and pursue a fresh arrangement.

The programme, initially worth $4.7 billion, was signed by the previous Awami League government in January 2023 and later expanded to $5.5 billion under the interim government.

Bangladesh has so far received $3.8 billion in five instalments. The sixth tranche was held up after the IMF suspended discussions in November last year, opting to resume negotiations with the new government after the election.

Opening of the article, excerpted from The Daily Star. To read the rest, open the article on the publisher's site.