IMF to release sixth tranche of $5.5 billion loan after consulting elected govt: Finance adviser
Earlier on 29 October, an IMF review mission arrived in Dhaka to assess whether Bangladesh has met the lender's conditions despite the decision not to release the fifth tranche of the loan during the tenure of the interim government
Highlights:
- Next IMF mission to visit Bangladesh in February
- Interim govt says it doesn't need the funds right now
- Govt preparing reform package for next administration, including pay and banking reforms
The International Monetary Fund (IMF) will release its sixth tranche of the $5.5 billion loan to Bangladesh after consulting with the elected government, Finance Adviser Salauddin Ahmed said today (9 November).
"Another IMF mission is scheduled to visit in February. The mission will assess the country's economic situation and decide on the disbursement of funds," he said speaking to reporters following a meeting of the Food Planning and Monitoring Committee at the Cabinet Division conference room.
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Earlier on 29 October, an IMF review mission arrived in Dhaka to assess whether Bangladesh has met the lender's conditions despite the decision not to release the fifth tranche of the loan during the tenure of the interim government.
Today, the adviser said the government has agreed to the IMF's proposals but currently does not require the funds.
"Let them review first. The mission will return in February. They will discuss how much this loan the elected government wants. Then they will release the loan," he said.
He also mentioned that he has spoken with the IMF. "They said, 'You are doing everything you can. You are doing well.'"
But they also have some recommendations, the adviser said, adding, particularly regarding the need to increase revenue collection.
"People in our country are reluctant to pay taxes, and the National Board of Revenue [NBR] was closed for two months, resulting in reduced revenue collection."
Additionally, the IMF recommended expanding social safety measures, he noted.
The adviser added that they will prepare a comprehensive package for the next government regarding IMF loans, including reform conditions and other issues.
"There is the issue of the pay commission. I cannot say right now what we can do. There is a reform of banking activities. We are working on that. I hope that an overall good situation will be created," he added.
