No decision yet on loan tranche; further talks to follow

No final decision has been made on whether Bangladesh will continue under the International Monetary Fund (IMF) loan programme worth $5.5 billion or receive the next instalment. Although progress has been made on several issues, a number of key matters remain unresolved. Finance and Planning Minister Amir Khasru Mahmud Chowdhury told journalists that these issues will be discussed again within the next 15–20 days.

He made these remarks to reporters yesterday, Saturday, after a meeting with IMF Deputy Managing Director Nigel Clarke on the sidelines of the World Bank–IMF Spring Meetings held in Washington, DC, the capital of the United States. The six-day meetings, which began on 13 April, concluded yesterday.

The finance minister said the discussions were held in a positive atmosphere and that both sides reached an understanding on many issues. It is not possible to arrive at a decision in a single day. This is an ongoing process, he said.

However, he did not specify which issues saw agreement and which remain unresolved.

Sources from the 14-member delegation led by the finance minister said that the IMF raised questions about the government’s spending, noting that while revenue mobilisation has not increased, the new government is incurring substantial expenditures to implement its election manifesto.

It also questioned the lack of assessment or evaluation of the social safety net card programmes being introduced. Bangladesh, in response, presented justifications for these expenditures. Most members of the delegation have already departed Washington for Dhaka, according to embassy sources.

Bangladesh’s $4.7 billion IMF loan programme began on 30 January 2023. In June 2025, during the interim government’s tenure, an additional $800 million was added. So far, Bangladesh has received $3.64 billion in five instalments, with $1.86 billion remaining. Of this, the sixth tranche of $1.3 billion was scheduled for release last December. Bangladesh negotiated with the IMF over this tranche during the recent Washington meetings.

Under the loan programme, the IMF requires Bangladesh to increase its revenue-to-GDP ratio by 0.5 percentage points annually. In reality, Bangladesh has fallen behind on this target. There are also commitments to reform the revenue and banking sectors, as well as a mandatory condition to make the exchange rate fully market-based.

Sources said the IMF has raised objections due to Bangladesh’s failure to meet these conditions and commitments. An IMF review mission is expected to visit Dhaka next month to discuss these issues. The further discussions mentioned by the finance minister within 15–20 days are likely to take place with this mission.

Weaknesses in the banking sector and structural reforms in the financial sector were also given importance in the discussions. When asked whether the IMF had refused to release the tranche, the finance minister said, “We have not yet reached that stage of discussion. So there is no scope to say ‘yes’ or ‘no.’ You have to understand that this is an ongoing process; it is not something decided in a day or an hour.”

In response to a question about whether Bangladesh is receiving funds under the Extended Credit Facility (ECF), he said, “Of course. We are seeing positive attitudes towards Bangladesh from all sides. Everyone is supporting the new government. That in itself speaks volumes.”

The finance minister also told reporters that discussions were held with World Bank President Ajay Banga. “He is very positive and has no disagreement with the BNP’s election manifesto,” he said. Meetings were also held with various IMF wings, including the International Finance Corporation (IFC). According to the minister, the IFC is interested in helping Bangladesh address problems in the banking sector.

IMF will stand by Bangladesh

A press release issued yesterday by the press wing of the Bangladesh Embassy in Washington, DC, stated that the finance minister outlined the BNP government’s governance approach and election commitments to the IMF. He also highlighted the government’s firm stance on issues directly affecting the public.

The statement said discussions covered revenue growth and financial sector reforms, noting that both sides agreed on most issues and also agreed that further discussions would be needed on some matters to reach consensus. However, differences remain on certain points.

The IMF clearly stated that it is a development partner of Bangladesh and intends to continue standing by the country during the tenure of the democratically elected current government, the statement added.

Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), told Prothom Alo that, “As far as it appears, no decision has been made in this round of meetings regarding disbursement under the ongoing loan programme. It seems the government is also seeking additional loans. In that case, the IMF may impose new conditions, which will likely be central to the next round of discussions.”

He added, “There is a Middle East conflict causing energy pressures, rising fuel prices, and the new government is only two months old—these are valid arguments. I don’t think the IMF will ignore them. I remain hopeful that Bangladesh will eventually receive the funds, even if with some delay.”