Not before January, officials say about IMF’s $4.5 bn loan to Bangladesh

The US$4.5 billion loan Bangladesh is seeking from the International Monetary Fund (IMF) is unlikely to arrive before January next year, according to officials familiar with the negotiations.

An IMF team is due to arrive in Dhaka on Wednesday to start formal talks on the terms of the loan Bangladesh has sought under the Washington-based lender’s Resilience and Sustainability Trust (RST), which helps member countries ensure sustainable growth, reports UNB.

With Bangladesh almost certain to get the loan for its budget support speculations are rife on when the disbursement will start.

Dr Ahsan H. Mansur, the executive director of the private research institute Policy Research Institute (PRI) and a former official of IMF told UNB on Tuesday, "IF the government accepts the IMF’s conditions, then it is possible to get the first installment of the loan at the beginning of next year."

But if the government shows more sincerity in fulfilling the conditions, then there is a chance to get the first installment by the end of this year, he said.

“The IMF delegation is coming to Bangladesh. This time, they will discuss the terms of lending. How soon the loan will be available depends on the team’s report,” he added.

Bangladesh Bank officials working on IMF loan say the deal is expected to be finalized by December and it may be presented at the IMF's board meeting in January.

In this regard, Bangladesh Bank Chief Economist Habibur Rahman said, "The IMF delegation’s report will be submitted to the IMF board. Then the loan will be available.”

However, it is difficult to say when the first installment of the loan will be available, he said.