$4.5b loan: IMF DMD Antoinette due on Jan 14

The International Monetary Fund (IMF) Deputy Managing Director Antoinette Sayeh is coming to Bangladesh ahead of the signing of a $450 crore loan agreement between the two parties.

She will stay in Dhaka for five days from January 14 to 18, said IMF and finance ministry sources.

During the visit, the top IMF official is scheduled to meet with Prime Minister Sheikh Hasina, Jatiya Sangsad Speaker Shirin Sharmin Chaudhury, Finance Minister AHM Mustafa Kamal, Bangladesh Bank Governor Abdur Rouf Talukder, Finance Secretary Fatima Yasmin, and Economic Relations Division Secretary Sharifa Khan, according to the finance ministry sources.

Her meeting with Prime Minister Sheikh Hasina is scheduled on January 16.

On January 18, Sayeh will visit the Padma Bridge where she will be briefed about the construction technique of the bridge and its importance in the national economy.

Sources said the $450 crore loan agreement will be signed within a few weeks after getting the approval of the IMF executive board.

The IMF executive board’s meeting will be held from January 25 to 27 after Antoinette Sayeh leaves Dhaka. She is likely to place the loan proposal at the board meeting.

As per the rules, a draft of the loan agreement signed by the finance minister and the central bank governor will be sent to the head office of the IMF before the proposal is placed at the board meeting.

Bangladesh sought the $450 crore loan from the IMF in July last and the global lender agreed to provide the loan to Bangladesh subject to conditions. A team led by Bangladesh Bank Governor Abdur Rauf Talukder met with the IMF on the side-lines of the World Bank-IMF annual meeting in Washington in October last. After the meeting, the governor told reporters that Bangladesh will get a loan from the IMF.

In order to set the conditions before giving the loan, an IMF delegation visited Dhaka from October 26 to November 9. The delegation met with the top management of almost all important government departments including Bangladesh Bank and Bangladesh Energy Regulatory Commission.

On November 9, after the concluding meeting with the IMF delegation, the finance minister clarified the reasons behind seeking the IMF loan.

He said, “The global economy is going through a transitional period. Almost all countries’ currencies depreciated against the dollar and foreign exchange reserves fell. The global economic crisis has affected the economy of Bangladesh to some extent. The IMF loan has been sought as a precautionary measure; to ensure that the global recession does not precipitate the country’s economic crisis.”

However, in the letter the government sent to the IMF, it was mentioned that Bangladesh urgently needs money for the balance of payments and budget support as times are bad.

The finance ministry sources said that before participating in the meetings, the IMF delegation sought information from the relevant sectors. In response, the government departments have also provided information. 

The IMF will disclose the terms of the loan after its executive board approves the loan proposal.

The first instalment of the loan, around $45.45 crore, will be released within 10 days of the board’s approval. It is expected to be available in the first week of February. The last instalment of this seven-phased loan will be available in December 2026. The average interest rate on the loan will be 2.2 per cent.