IMF agrees $4.5b loan for Bangladesh
The International Monetary Fund (IMF) and the Bangladesh government have reached an agreement for a 4.5 billion US dollar loan to Bangladesh_ pending the approval of its board.
'We are getting the loan just the way we wanted. A total of 4.5 billion dollar will be lent to Bangladesh_' Finance Minister AHM Mustafa Kamal told the media during a briefing in Dhaka on Wednesday afternoon.
The amount will be disbursed in seven instalments till December 2026. The first instalment of 447.78 million dollar will be cleared in February next year. The rest will be 659.18 million dollar each_ Bangladesh Finance Minister added.
'The interest rate of the loan will depend on the market rate at the time of maturity. The finance ministry has calculated that the rate would be around 2.2%.'
Mustafa Kamal also said the IMF had advised reducing non-performing loans and increasing revenue collection.
The international money lender_ however_ did not say anything regarding government subsidies_ he added.
An International Monetary Fund press release on Wednesday said_ 'The IMF staff and the Bangladesh authorities have reached a staff-level agreement to support Bangladesh's economic policies with a 42-month arrangement of about 3.2 billion dollar under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) as well as of about 1.3 billion dollar under the Resilience and Sustainability Facility (RSF).
Addressing the development_ Rahul Anand_ who is leading the IMF delegation visiting Bangladesh_ said_ To successfully graduate from Least Developed Country status and achieve middle-income status by 2031_ it is important to build on past successes and address structural issues to accelerate growth_ attract private investment_ enhance productivity_ and build climate resilience.
Against this backdrop_ and following initial measures to maintain macroeconomic stability_ the authorities have put together a programme supported by the IMF that is expected to bolster its external position_ reduce vulnerabilities_ and prepare the ground for a robust and inclusive growth pick-up by scaling up much-needed social_ development and climate spending.
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