REJAUL KARIM BYRON

The government has decided to exit the existing $5.5 billion loan programme with the International Monetary Fund (IMF) and move toward negotiating a new arrangement instead.

The IMF also agreed to hold formal talks on the fresh loan after the decision was conveyed during a virtual meeting on Thursday evening between Finance Minister Amir Khosru Mahmud Chowdhury and IMF Deputy Managing Director Nigel Clarke.

Officials from both sides joined the meeting, including Finance Secretary Khairuzzaman Mozumder and Bangladesh Bank Governor Md Mostaqur Rahman.

According to finance ministry officials, the government is considering a fresh three- to four-year programme worth $5 billion to $6 billion.

A formal letter will be sent to the IMF within the next few days, a senior finance ministry official told The Daily Star on condition of anonymity.

He said an IMF mission is expected to visit Bangladesh in July or August to discuss the reform agenda and determine the final size of the programme.

Once Bangladesh formally exits the current arrangement, any undisbursed amount will be returned. Officials said the size of the new package would depend on Bangladesh’s IMF quota and the facilities the government seeks to access.

“How much Bangladesh can draw will be known after calculations,” one official said.

Officials said the government was confident the IMF would issue “comfort letters” -- written assurances that Bangladesh remains eligible for lending -- based on the spirit of the ongoing discussions.

The IMF was yet to respond to requests for comments on the matter via WhatsApp messages.

In January 2023, the IMF approved $4.5 billion for Bangladesh under three facilities: the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). The package was expanded by $800 million in May last year under

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