IMF’s loan to be finalised on Jan 31: BB

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Staff Reporter :
Bangladesh Bank sees no problems in getting loan from the International Monetary Fund (IMF) as the multilateral lending agency is happy with Bangladesh’s proactive economic management amid the Covid-19 pandemic.
The central bank spokesperson Md Mezbaul Haque came up with the hope after a meeting with the visiting IMF Deputy Managing Director Antoinette Monsio Sayeh at the BB’s head office in the city on Sunday. Bangladesh Bank Governor Abdur Rouf Talukder and deputy governors were present at the meeting.
“No discussion on debt and financial sector reforms were held in the meeting. But, there will be no problem to get the planned loan worth $4.5 billion from the IMF as the loan will be finalised at its board meeting on January 31,” Haque told the reporters.
“Antoinette Monsio Sayeh praised the proactive measures taken by the government and the Bangladesh Bank to tackle the economic challenges the country is facing and also lauded the country’s socio-economic progress,” he said.
The BB spokesperson further said, “We have shared information about the monetary policy and the economic challenges including inflation, dollar shortage and liquidity crisis.”
Haque, however, said the meeting did not discuss anything about the $4.5 billion loan that Bangladesh sought from the multilateral agency in July last year.
There were also talks about climate financing from the IMF, he said, adding that issues of capacity building faced by the government and the Bangladesh Bank were also discussed.
Regarding Sayeh’s Dhaka visit, the IMF in its website said, “Inflation has increased in Bangladesh. Apart from helping Bangladesh to contain inflation, the IMF will also assist the country in achieving economic growth and stability.”
Sayeh came to Dhaka on Saturday from Delhi after completing her current Indian visit and will report to the IMF headquarters regarding the loan for Bangladesh to combat the global recession.
The report will be presented at the IMF board meeting. Based on this, the process of providing the loan will be finalised. The government has reached an in-principle agreement on the loan with the IMF. Now, only the formalities remain.
Some conditions have already been implemented. Electricity prices were hiked
by an average of 5 per cent on Thursday to implement another IMF condition.
The government will seek some time to implement some other IMF conditions.
The government hopes to receive the first installment of the IMF loan in February. In the first installment, the government will receive $454.5 million. After that, Bangladesh will receive one installment every six months.