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An International Monetary Fund (IMF) delegation may sit with Prime Minister Tarique Rahman just after the Eid vacation for reconfirmation of commitment from the new government on economic reforms tagged to its lending package.
Randa Elnagar, an IMF spokesperson for Asia, told The Financial Express that the IMF team was finalising the arrangements for the staff visit, which "tentatively should take place within the current month".
Officials say once the commitment is secured from the government high-ups, an IMF loan-programme-review mission will be dispatched to Bangladesh late April after the Spring Meetings of the IMF and the World Bank Group (WBG) in Washington, DC.
The IMF, which extended a total of US$5.5 billion in loan to support Bangladesh's dwindling economy to accomplish stability, last time in June last year approved and subsequently released some $1.3 billion in two tranches together.
However, since then, the IMF had declined to launch talks on next tranche of the credit programme with the then interim administration until a political government assumes office.
The release of loan tranches ultimately is facing delays by one year following Bangladesh's repeated failure on prior actions and IMF's concern on securing commitment from a political government.
The fourth and fifth tranches of the credits were expected to be available in February and May last year respectively. However, they were released together in June after overcoming the long deadlock.
The Fund originally granted $4.7-billion loan to Bangladesh in January 2023 amid macroeconomic instability stemming from the Covid-19-related volatility and war in Ukraine.
The macroeconomy of the country began to be destabilised as export earnings fell, remittance inflow tumbled, and foreign-currency reserves depleted. Thereafter, the government turned to the IMF for credit support where the lender came up with reform proposals to help revive the economy of the country.
The loan was scheduled to be given in seven instalments by May 2026. Last June, the loan amount was increased by another sum of $800 million.
Until now, Bangladesh has received $3.595 billion under this lending package. The tenure of the credit programme now has been extended until December next year.
syful-islam@outlook.com