Conditions must be met to obtain loan from IMF: Minister

The government will have to meet certain conditions to secure financial assistance under a new programme with the International Monetary Fund (IMF), said Finance Minister Amir Khasru Mahmud Chowdhury on Thursday, adding that negotiations were progressing positively.

Speaking after a meeting with IMF Deputy Managing Director Nigel Clarke in Bangkok, the finance minister said both sides had discussed a new programme, with further negotiations needed to finalise its conditions and implementation process.

“There will be conditions for the loan, and we will have to meet them. Some issues will be resolved through discussions and mutual understanding.''

Amir Khasru said the IMF had raised concerns over several areas, including the banking sector, the tax-to-GDP ratio, bank recapitalisation and overall macroeconomic stability. Bangladesh shares the fund's concerns in these areas, he added.

Many of the issues have already been addressed, while discussions on the remaining matters will continue, the minister said.

Asked about concerns over the credibility of Bangladesh's reform efforts, Chowdhury said both sides had their own observations regarding the banking sector and tax-to-GDP ratio.

“We agree with their observations, and many of the issues have already been addressed.''

The finance minister also said the IMF had expressed satisfaction with Bangladesh's recent economic progress, including developments following the national budget.

He added that the fund had acknowledged the country's progress despite various global challenges, including the ongoing conflict in the Middle East.

Further discussions will determine the conditions attached to the proposed programme and how Bangladesh will fulfil them, he said.