Written by The Banking Post
Bangladesh is hopeful of securing the next US$450 million installment from its $5.5 billion IMF lending package, as an International Monetary Fund (IMF) mission begins its review of the country’s economic performance and reform progress.
The IMF delegation, led by Chris Papageorgiou, started its assessment Wednesday under the Fund’s Article IV consultation, holding initial meetings with officials from the Ministry of Finance and the Bangladesh Bank.
According to finance ministry officials, the mission has sought detailed updates on the government’s subsidy-reduction policies, particularly in the power and fertiliser sectors, along with progress on budget adjustments, arrear payments to independent power producers, and midterm fiscal projections.
The IMF is also reviewing key indicators including net international reserves (NIR), exchange-rate management, liquidity operations, and quasi-fiscal activities. The team has requested fiscal expenditure projections for the remainder of the current fiscal year and updates on revenue collection and Annual Development Programme (ADP) implementation.
“We have had a good introductory meeting with the IMF team and are optimistic about a positive outcome,” said a senior finance ministry official. “We expect to receive the sixth tranche by December, subject to fulfilling the agreed conditions.”
During talks with the Bangladesh Bank, the IMF mission reviewed performance against the quarterly performance criteria (QPC) and structural benchmarks tied to the loan programme.
The Fund set targets for NIR at over $17 billion for June, $18 billion for September, and above $19 billion by December. As of late October, Bangladesh’s NIR stands at more than $20 billion, with gross reserves recorded at $32.15 billion by the central bank and $27.35 billion under IMF methodology.
The IMF team will continue discussions with various stakeholders over the next two weeks as part of its comprehensive review before releasing the next tranche of funds.
