Bangladesh Confident of Securing Remaining IMF Loan Installments

Bangladesh remains confident about receiving the fourth and fifth tranches of the International Monetary Fund (IMF) loan, Finance Adviser Dr Salehuddin Ahmed said on Sunday.

Speaking to reporters after a meeting with the visiting IMF delegation in Dhaka, Dr Ahmed noted that the IMF has recognised Bangladesh’s economy as being on the right track.

“Our discussions mainly focused on tax reforms. With a tax-to-GDP ratio of just 7 percent, the IMF stressed the urgency of increasing it,” he said. “They also sought clarity on revenue administration, the upcoming national budget, and the anticipated fiscal deficit.”

Dr Ahmed added that the IMF team will soon engage in detailed talks with the National Board of Revenue (NBR) to delve deeper into tax-related issues.

Beyond fiscal matters, the IMF has also begun preliminary discussions on the banking sector, particularly on measures to address non-performing loans.
“They asked about our initiatives to restore discipline in the banking sector. We informed them that a new legal framework is being prepared to enhance loan recovery,” Dr Ahmed said, adding that further discussions will be held with Bangladesh Bank.

The IMF delegation, which began its two-week visit on April 6, is scheduled to meet with various financial institutions during its stay in Dhaka.

A final decision on the disbursement of the remaining $2.39 billion of the loan is expected around May or June, Dr Ahmed informed reporters.