IMF’s loans to finalise within two weeks: BB

Staff Reporter :
The final decision regarding the $4.5 billion loan from the International Monetary Fund (IMF) will come within two weeks.
“The IMF team is visiting Bangladesh as part of its regular programme. We have discussed on banking and the overall economic situation. The final decision on the $4.5 billion loan will come within two weeks,” Bangladesh Bank (BB) Spokesperson GM Abul Kalam Azad told the journalists.
The IMF delegation on Thursday met the central bank officials as part of the ongoing discussions on lending to Bangladesh.
“Bangladesh has Extended Credit Facility, Rapid Credit Facility and Rapid Financing Instrument agreements with the IMF and talks with the IMF are proving to be fruitful,” Azad said.
The team will also hold meetings with the central bank on October 30, 31, November 2 and 8 to discuss same issue, the spokesperson said.
In the meetings, recent monitoring development and outlook, interest rate, government bonds, monetary exchange rate, research development, banking issues, Balance of Payments, IMF TA reports on external loan disbursement, recent trade performance, recent exchange performance, risk based supervision and technical meetings on AML will be discussed.
He further said, “The IMF team has not given any conditions to disburse the planned loans. But, they discussed the issue of reform and policy in our financial sector, discipline in bank sector and uniform dollar rate.”
The BB sources said that the IMF delegation asked Bangladesh Bank about the different dollar rates in the meeting.
In replying, the central bank said it rate is Tk 97 per dollar and rate of commercial banks is left to the market, they said.
Earlier, Bangladesh had sent a letter to IMF seeking a loan in July to deal with the economic crisis. Two weeks ago in a meeting in Washington, the IMF gave preliminary approval for the loan.
An IMF team came to Dhaka on Wednesday to discuss the terms of the $4.5 billion loan.
The IMF has pressed Bangladesh for declaring the borrowers defaulted if they do not pay the loan installments within 90 days of the stipulated time.
But the Bangladesh Bank does not agree over the “default based on 90-days past-due” rule, as the central bank in a position paper to the finance ministry argued the definition changing is subject to amending the Bank Company Act.
The international lender will hold meetings with various departments of the government from 26 October to November 9 in this regard.
Finance ministry officials expect to receive $1.5 billion as the first installment of the loan in January next year after negotiations on loan terms.
The IMF team, led by Rahul Anand, IMF Mission Chief to Bangladesh would also continue the engagement with other stakeholders during the visit.
This is the first mission and programme discussion which could continue over the coming months.