Bangladesh will expedite efforts to explore international bond markets to gather an increased volume of foreign funds to finance development works, the government was learnt to have told a visiting IMF delegation on Tuesday.
This way, it said, the domestic borrowings will be lessened as it ultimately lowers fund flow to the private sector, according to sources.
The International Monetary Fund (IMF) delegation on the day had meetings with the Government Debt and Financial Asset Management Wing of the Finance Division where they discussed domestic and external financing plans, government guarantees and the financing of the state-owned enterprises.
Also, the sources said, the Fund mission had meetings with the Economic Relations Division and the central bank discussing "external public debt stock and composition, disbursement, pipeline and rollover needs of external financing".
Moreover, they discussed the financing mix of Bangladesh's external borrowing to get update on flow of concessional loans, commercial borrowing, and non-concessional plans.
The risks to external planning, focusing geopolitical developments, and fiscal policies of donors also came up for discussion during the meetings, according to officials concerned.
The Fund delegation, led by Ivo Krznar, the IMF Mission Chief for Bangladesh, is visiting Dhaka to assess macroeconomic situation of the country and discuss a new credit programme. They are also discussing with the Bangladeshi authorities their reform agenda and policy priorities.
Bangladesh is expecting a $4.0 billion to $4.5 billion worth of credit programme once the discussion and subsequent negotiations are completed. The Fund is expected to flow in by the end of December, according to finance division officials.
syful-islam@outlook.com
