No IMF tranche blocked, talks still underway: Khosru pushes back on reports

Finance Minister Amir Khasru Mahmud Chowdhury has brushed aside speculation about a possible stalling of loan tranches from the International Monetary Fund (IMF), describing the ongoing negotiations as a “work in progress” with no negative outcomes so far.

Speaking to journalists on Friday after meetings with IMF officials during the IMF-World Bank Spring Meetings in Washington, DC, the minister responded to reports suggesting that the lender had “blocked” an upcoming instalment under the Extended Credit Facility (ECF).

“Those who have written negatively about the loan must provide their own answers. No such discussion took place, nor have we reached a stage where any instalment is being blocked,” he said, adding that the government remains confident of securing the remaining funds.

Mr Chowdhury described his meetings with IMF officials and Ajay Banga, president of the World Bank, as “highly positive,” noting that the lenders’ objectives are aligned with the economic pledges of the Bangladesh Nationalist Party (BNP).

“There is no disagreement on the issues aligned with our manifesto. Our international partners are supporting the new government’s vision,” he said, adding that various arms of the World Bank Group, including the International Finance Corporation (IFC), are keen to support reforms in the banking sector.

While a significant number of conditions have already been met, the minister acknowledged that several unresolved issues remain under discussion. He said these complexities cannot be settled overnight and described the process as ongoing.

The minister expressed hope that consensus on pending issues could be reached within the next 15 to 20 days. “This is not a matter for a one-hour or one-day decision. The dialogue will continue beyond the next fortnight. It is a continuous process,” he added.

Regarding the ECF tranches, he noted a “prevailing sense of positivity” among stakeholders.

The minister’s remarks come as the new administration seeks to stabilise the macroeconomy and restore confidence in the financial sector, with the next IMF programme review seen as a critical milestone for Bangladesh’s credit outlook.

Bangladesh signed a $4.7 billion loan agreement with the IMF on January 30, 2023, amid economic strain caused by the Covid-19 pandemic and the Russia-Ukraine war. The IMF later extended the programme by six months in June last year and added $800 million, bringing the total package to $5.5 billion.

So far, Bangladesh has received U$3.64 billion under five tranches: U$476.3 million in February 2023, U$681 million in December 2023, U$1.15 billion in June 2024, and U$1.33 billion in June 2025, leaving U$1.86 billion yet to be disbursed.

The IMF had been due to release another tranche last December but withheld it pending discussions with an elected government.

A 14-member delegation led by the finance minister is attending the Spring Meetings, which began on April 13 and will conclude today (April 18).

The delegation includes Finance Secretary Dr Md Khairuzzaman Mozumder, NBR Chairman Md Abdur Rahman Khan, Bangladesh Bank Governor Md Mostaqur Rahman, ERD Secretary Md Shahriar Kader Siddiky, and other senior officials. Several business leaders, including Basumati Group Chairman ZM Golam Nabi (CIP), are also attending the high-level gathering.

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