All IMF conditions may not be acceptable to current administration, says finance minister

Finance Minister Amir Khosru Mahmud Chowdhury has said not all of the International Monetary Fund (IMF) conditions attached to Bangladesh’s current loan programme may be acceptable to the "elected" BNP government, drawing a contrast with the Awami League administration that negotiated the deal.

Speaking to reporters on Sunday after returning from the IMF-World Bank Spring Meetings in Washington, he said the current administration will decide whether to enter any further programme with the IMF once the current one ends and what conditions it would accept in line with the public interest.

Asked whether Bangladesh would receive the next tranche of IMF funds by June or July, Khosru said the issue was bigger than timing.

“This programme with the IMF was started under the previous Awami League government,” he said.

“There are many kinds of conditions in it. Many of those conditions may not be acceptable to us. That programme was taken under an unelected government. This is an elected government.”

He added that the government would not accept any condition that harmed public interests.

Khosru noted that the current IMF programme would end in six to seven months, and that the government would then decide its next course of action.

“Whether we go into a further programme or not — that is our decision,” he said.

The finance minister said talks with the IMF were still continuing and could continue for another 15 to 20 days, or even longer.

"We’ll make a decision based on the outcome of the talks.”

He also said the government did not agree with a number of IMF conditions, though he declined to specify which ones.

"I cannot discuss this publicly," he said.

Reiterating the government's commitment to the people and to its election promises, he added: "We will neither take nor give anything that goes beyond protecting public interest. This is a matter for both sides. It is not just that they will give and I will take — it is mutual.

"There is no charity here. These are business transactions, we have to keep this in mind."

Regarding borrowing from other partner organisations, he said: "The discussions we have had with the World Bank are almost complete. With the ADB, it is done. With the Infrastructure Bank, that too is done."

"The issues that are pending with the IMF are under discussion now. It’s not over yet. And the issues that we have not yet fully agreed on during the discussions are still being discussed."

A Bangladesh government delegation led by the finance minister participated in various meetings at the IMF-World Bank Spring Meetings.

Meanwhile, reports emerged that the IMF had decided to suspend the next tranche because Bangladesh had failed to meet the lender’s conditions on reform in the revenue and banking sectors.

The reports also said Bangladesh had been advised to consider a new programme, raising concern that the country could face even stricter conditions under any new arrangement.

However, on the fourth day of the meetings in Washington, the finance minister had said that both the World Bank and the IMF remained “very positive” about continuing Bangladesh’s financing and lending programme.

Bangladesh secured a $4.7 billion IMF loan in 2023 under the Awami League government and has so far received $3.64 billion in five instalments.

The sixth tranche, worth $1.3 billion, had been due in December last year, but the disbursement was delayed after the IMF indicated that the money should go to an elected government.

Before releasing that amount, the lender wants to see progress in implementing the agreed conditions.

Bangladesh is also seeking at least $3 billion in budget support to help manage current economic pressures, the upcoming budget and the impact of the war in the Middle East. That issue is also under discussion at the current meetings.