The International Monetary Fund (IMF) has agreed to lend Bangladesh $4.5 billion in loans in seven installments, said Finance Minister AHM Mustafa Kamal.
While briefing the media he said that they are getting the loan just the way they wanted. A total of $4.5 billion will be lent to Bangladesh.
“The amount will be disbursed in seven installments till December 2026. The first installment of the loan will be cleared in February next year,” he told the media.
The interest rate of the loan will depend on the market rate at the time of maturity. The finance ministry has calculated that the rate would be around 2.2%.
IMF has advised to reduce of non-performing loans and increase revenue collection, the minister added.
However, the international money lender did not say anything regarding government subsidies, he added.
As per an IMF press release issued in this regard, “IMF staff and the Bangladesh authorities have reached a staff-level agreement to support Bangladesh’s economic policies with a 42-month arrangement of about $3.2 billion under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) as well as of about $1.3 billion under the Resilience and Sustainability Facility (RSF).
“The objectives of Bangladesh’s new fund-supported program are to preserve macroeconomic stability and support strong, inclusive, and green growth while protecting the vulnerable. The RSF is expected to provide affordable, long-term financing to support Bangladesh’s climate investment needs, catalyze climate financing, and reduce the balance of payment pressures from import-intensive climate investment.”
Addressing the development, Rahul Anand, who is leading the IMF delegation presently visiting Bangladesh, said, “The Bangladesh authorities and the IMF team have reached a staff-level agreement to support the authorities’ reform policies under a new 42-month ECF/EFF arrangement of about $3.2 billion and a concurrent RSF arrangement of about $1.3 billion.”