The visiting officials from International Monetary Fund (IMF) have expressed satisfaction with the explanations provided by the Bangladesh Bank over the changes it made to the definition of loan classification.
The reaction from the IMF team came following a meeting with the central bank officials in Dhaka, a top BB official said while confirming the matter to The Business Post on Tuesday.
The official, who was also part of the meeting, said the multilateral lender was informed that small and medium businesses would have in trouble if the changes to the definition of loan classification were not made, and subsequently the overall economy would have faced additional pressure.
During the meeting, the Bangladesh Bank said the situation at home and abroad is not normal due to various reasons including Covid-19, flood, and Russia-Ukraine war. Under the circumstances, defaulted loans have increased.
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“The IMF officials were satisfied with the explanation and did not raise any objection,” he said.
The central bank also informed the visiting IMF team about extension of the loan reschedule facility because of the overall domestic and global economic turmoil.
“This may be changed in future depending on how the facility is being used,” the official added.
