IMF shows interest in new three-year loan programme with elected govt

The International Monetary Fund has expressed interest in a new three-year loan programme with the elected government, alongside the existing loan programme. The agency has also urged the government to expedite the completion of its economic reform programmes.

The IMF has also expressed concern over the country's current macroeconomic situation. A virtual meeting between Finance and Planning Minister Amir Khasru Mahmud Chowdhury and IMF Deputy Managing Director Nigel Clarke was held on May 21, where these issues were discussed.

The Ministry of Finance disclosed the information on Monday, May 25. Discussions covered Bangladesh's macroeconomic situation, progress of the ongoing IMF programme, and future cooperation. The finance minister thanked the IMF for its continued cooperation and engagement.

The finance minister stated that the government is committed to macroeconomic stability and structural reforms. However, he noted that the current IMF programme was adopted in a different economic and policy context, and subsequent domestic developments, political economy, and global uncertainties have created challenges in implementing certain reforms.

He said the government does not wish to retreat from reforms but is interested in implementing them in a phased manner, aligned with the country's realities.

The finance minister informed the IMF deputy managing director that, considering the overall situation, the government is interested in a new loan programme under the newly elected government, which would include priority and implementable reforms within a realistic three-year timeframe.

Nigel Clarke stated that the IMF welcomes Bangladesh's reform efforts and the initiative to adopt a new programme. He expressed optimism that the IMF's constructive and close engagement with Bangladesh will continue. Both sides agreed on adopting a realistic and implementable new loan programme and initiating related activities promptly.