IMF team arrives in Dhaka to review progress on loan conditions
Over the next two weeks, IMF representatives will hold meetings with several government bodies
The International Monetary Fund (IMF) review mission arrived in Dhaka today (29 October) to assess whether Bangladesh has met the lender's conditions despite the decision not to release the fifth tranche of the $5.5 billion loan during the tenure of the current interim government.
The IMF mission held meetings with various departments of Bangladesh Bank. The first session was chaired by Deputy Governor Nurun Nahar, with three other deputy governors and officials from relevant departments in attendance.
Earlier in the morning, the IMF representatives paid a courtesy call on Finance Secretary Dr Md Khairuzzaman Majumder. In the afternoon, they held separate meetings with officials from the Macroeconomic Division and Budget Division.
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During the discussions, IMF officials inquired about the shortfall in revenue collection compared to the targets set under Bangladesh's loan programme, officials said.
They also sought clarification on whether the government plans to increase domestic and foreign borrowing to bridge the revenue gap.
Finance ministry officials said the opening-day meetings focused on preliminary discussions across several issues.
Over the next two weeks, IMF representatives will hold meetings with officials from the National Board of Revenue (NBR), the Ministry of Power, Energy and Mineral Resources, the Ministry of Agriculture, and several other government bodies.
According to the loan agreement signed between Bangladesh and the IMF, the fifth tranche of the loan is scheduled for disbursement in December.
The IMF provided the government with a list of required reform conditions last June. Except for revenue mobilisation targets, Bangladesh has reportedly met all other conditions.
The visiting review mission will now verify the extent of the country's progress on these commitments.
During the recent IMF–World Bank Annual Meetings in Washington, IMF officials informed Bangladesh that the lender would not release the fifth tranche in December. Instead, the IMF will hold discussions with the new government formed after the upcoming national election and may release the tranche in March or April next year.
Bangladesh Bank Governor Ahsan H Mansur had also conveyed the same information to The Business Standard after the conference.
Following the IMF's decision to delay the tranche disbursement, Bangladesh proposed postponing the review mission as well, suggesting that it be held under the next elected government.
However, the IMF declined the proposal, prompting Dhaka to ultimately agree to the lender's plan to send the review team this month.
