"The IMF stands ready to support Bangladesh, and the staff will engage with the authorities on program design as per the established policies and procedures of the Fund," an IMF spokesperson said. "The amount of support will be part of the program design discussions."

Earlier in the day, Bangladesh's finance minister told reporters the government would take an IMF loan only if conditions are favourable and said the country's macroeconomic conditions were fine.

"If the IMF conditions are in favour of the country and compatible with our development policy, we'll go for it, otherwise not," minister AHM Mustafa Kamal said. "Seeking a loan from the IMF does not mean Bangladesh's economy is in bad shape."

The IMF's resilience and sustainability trust caps funds at 150 per cent of a country's quota or, in Bangladesh's case, a maximum of $1 billion.

Bangladesh's Daily Star newspaper reported on Tuesday that overall, the country wanted $4.5 billion from the IMF, including for budgetary and balance-of-payment support.

The country's economic mainstay is its export-oriented garments industry, which is bracing for a slowdown as key customers like Walmart are saddled with backlog as inflation forces people to prioritise essentials.

After garments, remittances are the second highest source of foreign currency for Bangladesh, a country of nearly 170 million people.

Its foreign exchange reserves fell to $39.67 billion as of July 20 - sufficient for just over five months worth of imports - from $45.5 billion a year earlier.

Its July to May current account deficit was $17.2 billion, compared with a deficit of $2.78 billion in the year-earlier period, as its trade deficit widened and remittances fell.

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