IMF loan for Bangladesh likely to be approved 30 January

The USD 4.5 billion loan support for Bangladesh is likely to be approved at the executive board meeting of the International Monetary Fund (IMF) on 30 January.

The visiting IMF deputy managing director (DMD) Antoinette Monsio Sayeh confirmed the matter in a press statement on Monday.    

Earlier on 9 November, IMF agreed a USD 4.5-billion loan support programme for Bangladesh to manage the economic crisis.

At that time, the finance minister AHM Mustafa Kamal said the IMF will finalise the loan support by next three months. The first of seven installments will be disbursed in February while the last one in December 2026. The interest rate of the loan has been set as per the market price, at 2.2 per cent.    

Antoinette Monsio Sayeh met prime minister Sheikh Hasina on Monday, a day after she called on finance minister AHM Mustafa Kamal and Bangladesh Bank governor Abdur Rouf Talukder.    

BSS adds:

Antoinette Monsio said IMF cherishes the long standing partnership with Bangladesh, and she came here to further strengthen the relationship. Prime Minister's Speech Writer Md Nazrul Islam briefed reporters after the meeting.

The prime minister said Bangladesh does not want any assistance from the IMF for bail-out, rather the country has wanted the support as a preemptive measure.

"We don't' want any bail-out. Our this programme is not a bail-out," she added.

The IMF deputy managing director said the whole world faces challenges due to the staggering impacts of the Covid-19 pandemic and a difficult situation because of the Russia-Ukraine war.

In this situation, the emerging economies like Bangladesh are facing different problems related to inflationary pressure, price-hike of commodities and the reserve of foreign currencies, she said.

She continued that the IMF will stay beside Bangladesh's efforts to face these problems.

The prime minister said the pace of the country's progress has slowed down due to the Covid-19, Russia-Ukraine war and sanctions and counter-sanctions.

Bangladesh has also fallen into difficulties due to the commodity price-hike, she said, adding that the government has widened the social safety net and expanded food programmes to support the lower income people.

Sheikh Hasina said the government has undertaken development programmes targeting poverty alleviation and food security as well as various measures like widening social safety net coverage and providing food and other essentials through TCB and VGF cards to lessen poor people's sufferings.

She said Bangladesh is bringing the fallow lands under cultivation to boost food production.

The lower-income people are suffering from high inflation even in many developed countries, she added.

The IMF deputy managing director praised the socio-economic transformation under the leadership of prime minister Sheikh Hasina.

She also mentioned successes of the government in various sectors including women empowerment, education, agriculture and achieving over 6 per cent GDP growth during last one decade.

Pointing out various development programmes of her government, the prime minister said the aim of such programmes were to alleviate poverty and ensure food security of the poor community.