REJAUL KARIM BYRON

The International Monetary Fund (IMF) has offered an additional $1 billion to Bangladesh but the government is pushing for at least $2 billion to implement the interim government’s reform agenda, narrow the deficit in the current account and shore up the dollar stockpile.

Finance Adviser Salehuddin Ahmed sought a fresh $3 billion from the Washington-based multilateral lender under the existing loan programme on the sidelines of the annual World Bank-IMF meeting in October.

Following the discussion, a 13-member IMF mission came to Bangladesh at the beginning of the month to review the country’s performance and compliance with structural reform conditions for the fourth tranche of the existing loan.

The issue of extending the loan amount was discussed with the mission, which has offered about $1 billion in exchange for additional reform conditions, The Daily Star has learnt from people involved with the discussions.

But the government is holding out for at least $2 billion. In that case, $1 billion would be coming in each of the remaining four tranches under the existing loan programme.

In January last year, the multilateral lender approved a $4.7 billion loan package for Bangladesh. So far, it has disbursed $2.3 billion in three instalments.

Meanwhile, the IMF mission is set to hold talks with officials of the finance ministry and the central bank today and on December 15 to finalise various policy documents.

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