Bangladesh may quit IMF loan if more conditions added

Bangladesh will pull out of the loan programme if the International Monetary Fund (IMF) imposes additional conditions for the release of upcoming tranches of the US$4.7 billion loan, warned Chief Adviser’s Special Assistant Anisuzzaman Chowdhury.

He made the statement on Saturday while speaking at a budget seminar held at the Bangladesh Agricultural Research Council in Farmgate, Dhaka.

“Bangladesh will withdraw if the IMF imposes more conditions for loan releasing. Because if all the conditions of the organisation are followed, the economy will become weak,” said Anisuzzaman.

At the seminar ahead of Bangladesh's final recognition as a developing country next year, agricultural economists urged the government to raise the agriculture budget with clear targets.

They also recommended reducing VAT on the import of raw materials used in poultry feed production, and called for easier access to loans and incentives for farmers.

Faced with dwindling foreign exchange reserves, Bangladesh signed a US$4.7 billion loan agreement with the IMF on January 30, 2023.

The first tranche of US$476.27 million was disbursed three days later. This was followed by a second instalment of US$682 million on December 16 of the same year. The third instalment of US$1.15 billion was received on June 24 last year.

The IMF is scheduled to release the loan in six instalments by 2026. Although Bangladesh has so far received three, uncertainty now surrounds the disbursement of the fourth and fifth instalments, reports UNB.