Bangladesh may withdraw from the IMF loan program if additional conditions are imposed
According to Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser.
Bangladesh May Exit IMF Loan Programme if New Conditions Are Imposed: Anisuzzaman Chowdhury
Bangladesh may exit the $4.7 billion loan programme with the International Monetary Fund (IMF) if further conditions are attached to the release of upcoming instalments, warned Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser.
Speaking at a budget seminar at the Bangladesh Agricultural Research Council in Farmgate, Dhaka on Saturday, Anisuzzaman stated: “Bangladesh will withdraw if the IMF imposes additional conditions. Complying with all their requirements could weaken the economy.”
The seminar, held ahead of Bangladesh’s formal graduation to developing country status next year, featured calls from agricultural economists for a larger agriculture budget with clearly defined targets. They also recommended cutting VAT on imported raw materials for poultry feed, improving farmers’ access to loans, and expanding incentive schemes.
Facing pressure from declining foreign exchange reserves, Bangladesh signed the IMF loan agreement on 30 January 2023. The first tranche of $476.27 million was disbursed three days later, followed by a second tranche of $682 million on 16 December, and a third tranche of $1.15 billion on 24 June.
The six-part loan is scheduled to be fully disbursed by 2026. However, uncertainties now cloud the release of the fourth and fifth tranches.
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