Govt not sincere in meeting conditions imposed by IMF: BNP

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The government is not sincere in meeting conditions imposed by the International Monetary Fund (IMF), claims the opposition Bangladesh Nationalist Party (BNP).

While providing a loan to Bangladesh, the International Monetary Fund (IMF) imposed a few conditions, one of which was bringing down defaulted bank loans below 10% in public sector banks and 5% in private banks.

The results should be visible from next June and fully implemented by 2026, the condition prescribes.

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In this regard, BNP Secretary General Mirza Fakhrul Islam Alamgir said the government is taking inefficient steps to reduce bad debt. "It is a kind of an 'eye wash'. They are trying to transfer recoverable defaulted loans of one bank to another."

"Again the defaulted loans of large business groups are being renewed through refinancing and rescheduling. The central bank has already relaxed the loan waiver policy in nine banks."

However, it is not possible to reduce defaulted loans without the policy support of the central bank, said the BNP secretary general adding, "It was clear at the outset of the IMF loan that the government was not serious about reducing defaults."

In this regard, Economist Wahid Uddin Mahmud said, "Just signing the paper will not reduce loan defaults. It requires political goodwill as well."

Fakhrul said, "Financial sector reform is essential for macroeconomic stability. A sustainable economy requires improving fiscal management and strengthening government institutions."

"Revision of taxation, financial and banking sector, budget management and trade policy is necessary. This requires a corruption-free system and a genuinely democratic government elected by the people," added the BNP leader.

Mentioning that Bangladesh would not need to take the loan if money laundering abroad could be prevented, he said, "The government needed to make the reforms proposed by the IMF before taking the loan to save the economy," he said.

The common man should not have to bear the burden of the loan, he remarked.

The BNP secretary general said the government hiked electricity and gas prices twice in the last one month. Gas prices have increased 400% in the last 13 and a half years. The price of gas per unit in large industries has been increased from Tk11.98 to Tk30."

The government hiked prices as part of cutting subsidies in the energy and power sector to meet the IMF conditions, he added.

"The question here is why people should bear the responsibility of the government's corruption and mismanagement," said Mirza Fakhrul Islam Alamgir.