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Bangladesh, IMF to Finalise Loan Talks Next Week

GreenWatch Desk: Economy 2026-10-16, 9:15pm

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Bangladesh will hold further discussions with the International Monetary Fund (IMF) next week to resolve outstanding issues and finalise a proposed new loan agreement, Finance Minister Amir Khasru Mahmud Chowdhury said on Friday.

Speaking to journalists after a meeting with the IMF on the sidelines of the 2026 IMF-World Bank Group Annual Meetings in Bangkok, he said the two sides had reached an understanding in principle on the proposed loan and would now work towards finalising the agreement.

“Everything regarding the loan has been agreed upon in principle with the IMF. Delegations from both sides will now discuss how to finalise the agreement. The meeting also discussed the final review of Bangladesh’s loan proposal,” the finance minister said.

An IMF delegation is scheduled to visit Bangladesh on October 23. The upcoming discussions in Dhaka are expected to focus on resolving the remaining issues and determining the details of the proposed loan package.

The minister did not disclose the proposed loan’s total amount, tenure, interest rate or conditions. These details are expected to become clearer as negotiations progress towards a final agreement.

He said Bangladesh’s development partners were working closely with the country and had expressed their willingness to provide support. The World Bank, IMF, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and other development partners were interested in assisting Bangladesh, he added.

Describing the coming year as particularly important for Bangladesh, Amir Khasru said the country’s development partners shared the same assessment.

The ongoing engagement with the IMF comes as the government seeks to stabilise the economy, strengthen revenue collection, contain inflation and advance financial sector reforms. The outcome of the negotiations is expected to shape Bangladesh’s engagement with the lender on these issues, although the terms of any new agreement will depend on the final discussions.

Meanwhile, the government has proposed signing a Country Partnership Framework (CPF) with the World Bank to establish a structured framework for development cooperation over the next five years.

The finance minister said the government had prepared a five-year development framework and planned to work with the World Bank to identify national development priorities and areas for cooperation.

The proposed CPF would help determine which sectors require development assistance, establish priorities and guide the effective use of World Bank support in the coming years.

Although both institutions are key development partners, their roles differ. IMF lending generally focuses on macroeconomic stability and policy reforms, while the World Bank’s country partnership framework sets out longer-term development priorities and cooperation, including support for development projects.

The finance minister discussed the issues on the sidelines of the 2026 IMF-World Bank Group Annual Meetings, held in Bangkok from October 12 to 18.