The government and the IMF team have reached a staff-level agreement to support the authorities’ reform policies under an arrangement of about $3.2 billion, and a concurrent RSF arrangement of about $1.3 billion.
The amount would be disbursed over a 42-month period, with the first instalment expected in February next year, Finance Minister AHM Mustafa Kamal told reporters after wrapping up his engagements with the visiting IMF staff mission.
This would be Bangladesh’s 13th loan from the Washington-based multilateral lender, with the last package taken in 2012.
In exchange for its loan, the IMF typically insists governments do what they find most difficult: reduce public spending, raise taxes and implement reforms designed to lower their debt-to-GDP ratios, such as cutting subsidies for fuel or food.
