First instalment of $4.5b IMF loan likely to arrive by next month: BB spokesman

PBC NEWS DESK: The visiting International Monetary Fund (IMF) delegation, led by its Deputy Managing Director Antoinette Monsio Sayeh, on Sunday discussed with Bangladesh Bank officials the country’s economic challenges and the request for a $4.5 billion loan from the Washington-based lender.

Bangladesh Bank Governor Abdur Rouf, along with deputy governors and other senior officials, met with the four-member IMF delegation at BB Head Office, the central bank’s spokesperson and executive director Md Mezbaul Huque told reporters.

He said the meeting discussed different programmes taken by Bangladesh Bank and the government to deal with economic challenges, including the pressure on foreign currency reserves.

The IMF delegation praised the government’s steps in dealing with the Covid-19 pandemic, he said.

“The different economic challenges have been highlighted including steps to combat climate changes,” he said.

The BB spokesperson said that there was no discussion in the meeting regarding credit and financial sector reforms.There would not be any problem in getting a loan from IMF, Mezbaul said adding that the lender is likely to approve the loan at its January 31 board meeting.

Bangladesh has requested the IMF loan to deal with the dwindling reserves and maintain macroeconomic stability.

The IMF has given its initial approval. The IMF board is expected to give a final go ahead end of this month, according to Bangladesh officials involved in the negotiations.

The first instalment of the loan is likely to be available early February, sources at the central bank said.The IMF delegation arrived in Dhaka on Saturday to further discuss the issues related to Dhaka’s loan request.