An IMF technical assistance mission is set to arrive in Dhaka on September 6, embarking on a 15-day visit aimed at conducting a fiscal risk analysis, focusing on the macroeconomic risks in Bangladesh.
This is a routine mission, a Finance Division official engaged in the process confirmed.
The team will also assess Bangladesh’s debt management strategies and analyse recent and expected trends in external non-concessional borrowing to determine the potential risks associated with government debts.
However, the visit of the technical assistance mission is not connected to the terms of obtaining the $4.7 billion loan from the multilateral lender.
The second instalment of the IMF loan is expected to reach Bangladesh in December. Preceding that, a review delegation is slated to come on October 4 to evaluate the progress in fulfilling the conditions tied to the loan, the official mentioned.
While in Bangladesh during 6-19 September, the IMF officials will conduct a series of meetings with the finance ministry, the Prime Minister’s Office, the Bangladesh Bank, and other ministries and departments.
They will also discuss Bangladesh’s macroeconomic risk analysis and debt sustainability analysis, in addition to the risks identified within the microeconomic and fiscal outlook of the Medium-Term Macroeconomic Policy Statement.
The Finance Division has initiated preparations for the upcoming visit. On Monday, its macroeconomic wing sent letters to the relevant ministries, requesting the necessary information and support and urging them to designate a focal point officer.
During the first two days of the visit, the IMF delegation will engage in meetings with officials from different wings of the Finance Division. These discussions will focus on the legal and institutional framework for fiscal risk management as well as the state-owned enterprises’ current situation.
IMF mission will request a significant amount of information concerning state-owned enterprises. This will include details about their governance structure, controls, and financial oversight mechanisms, public service obligations, financial assistance, and the historical performance of the enterprises in meeting debt service payment obligations.
IMF officials will conduct an assessment to determine if any fiscal risks are emerging in Bangladesh due to public-private partnership (PPP) projects. The mission will evaluate both firm and contingent liabilities associated with PPP initiatives.
In addition, the IMF team will analyse the management of government guarantees and loans to state-owned enterprises. It will review the current stock of guarantees, beneficiaries, outstanding guarantees, servicing of guaranteed debt, and the target amount of guarantees in the next three financial years.
Miraj Shams/Shamim
