IMF ‘committed’ to people of Bangladesh

by times news cr

2024-10-03 14:22:57

The International Monetary Fund (IMF), the second largest lender in the world, is ‘committed’ to the support of Bangladesh and its people, said Chris Papageorgiou, the mission head of the organization visiting Dhaka. This information was informed in a press release sent from the Dhaka office of the organization on Monday (September 30).

An IMF mission team led by Chris Papageorgiou visited Dhaka on September 24-30 to discuss recent developments in Bangladesh and government reform activities. The mission issued a statement at the end of its activities till Monday.

The statement said, “We are deeply saddened by the loss of life and injuries in the recent uprising and express our solidarity with the people of Bangladesh at this difficult time. The timely formation of an interim government helped stabilize the political and security situation, contributing to a gradual return to normalcy in the economy.

It said, however, that economic activity has slowed significantly, with inflation hovering at double-digit levels due to recent unrest and major floods. Deterioration in the balance of payments has put additional pressure on foreign exchange reserves. At the same time, tax revenue collection has declined, leading to increased expenditure pressures and accumulation of domestic payment arrears. Weaknesses in the financial sector have become more pronounced. In this context, the authorities and the IMF held open and productive discussions on the policies and reforms needed to address these emerging challenges. We support the authorities’ efforts to initiate policy coordination, including continued fiscal tightening and rationalization of non-core capital expenditure, in response to these challenging circumstances.

According to the statement, IMF is a steadfast partner of Bangladesh. Fully committed to supporting Bangladesh and its people. Within the framework of ongoing IMF-supported programs, we will continue to work closely with the authorities to advance Bangladesh’s reform agenda. We welcome the authorities’ new commitment to implement reforms under IMF-supported programs aimed at ensuring macroeconomic stability, job creation, strengthening institutions and fostering strong, sustainable, equitable growth. The issue will be discussed at the upcoming 2024 IMF and World Bank annual meetings.

The IMF mission chief said the IMF team is grateful to the Bangladeshi authorities and other stakeholders for their hospitality and frank discussions. The group’s finance advisor. Saleh Uddin Ahmed, Governor of Bangladesh Bank. Ahsan held a meeting with Mansoor and other senior officials. The team also met with representatives of the private sector, think tanks, bilateral donors and development partners.

IMF will give another 3 billion dollars to Bangladesh in addition to the ongoing loan program of 4.7 billion US dollars. The organization has held initial discussions with the government in this regard. It is reported that the mission held about 15 meetings with various public and private organizations from September 24 to 30.

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