A delegation of the International Monetary Fund (IMF) will arrive in Dhaka on October 26 to discuss the terms of a $4.5 billion loan to Bangladesh, said the finance ministry said on Tuesday.
The team will stay for 10 days and will hold meetings with government officials of different offices, including Bangladesh Bank, and the ministry.
Of the $4.5 billion loan, Bangladesh sought $1.5 billion each for balance of payment and budget support and another $1.5 billion from the IMF’s newly created Resilience and Sustainability Trust fund. The trust helps countries build resilience to external shocks and ensure sustainable growth.
The central bank governor, Abdur Rouf Talukder, confirmed that he was verbally assured of getting the loan from the IMF during his recent Washington visit.
Besides, the World Bank will provide another $1.0 billion separately as budgetary support for Bangladesh.
However, the IMF is also expected to attach various conditions to the disbursement of the loans.
The IMF, according to The Daily Star, has outlined wider reform measures, including bringing discipline to the financial sector and boosting revenue collection, for Bangladesh to avail the $4.5 billion loan.
Highlighting the overall situation of the economy, last July, Bangladesh wrote a letter to the IMF asking for a loan to maintain the balance of transactions and as budget support.
Although the loan amount was not mentioned in the letter, sources said then that Bangladesh wanted a $4.5 billion loan as budget support.
