Talks with IMF for new loan to continue in Bangkok

Talks with the International Monetary Fund on a new loan programme worth up to $5 billion are set to continue next week in Thailand on the sidelines of the 2026 annual meetings of the IMF and the World Bank.

There would be several meetings on the size of the loan and the associated policy conditions on the sidelines of the annual meeting, which is hosted outside the multilateral lenders’ Washington headquarters every three years.

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Bangladesh could access between $4.5 billion and $5 billion based on its IMF quota.

Negotiations are expected to revisit carryover conditions from the previous programme, focusing primarily on exchange rate management, banking sector reforms, subsidy cuts in electricity and fertiliser, and domestic revenue mobilisation.

If the talks in Thailand make sufficient headway, an IMF mission is expected to visit Dhaka later this month, The Daily Star has learnt from finance ministry officials involved with the proceedings.

In May, eight months before the expiry of its tenure, the new BNP-led government decided to exit the $4.7 billion loan programme signed by the previous Awami League government in January 2023 and later topped up to $5.5 billion by the interim government.

Bangladesh has so far received $3.8 billion in five tranches, with the sixth tranche delayed after the IMF suspended talks in November last year and decided to resume discussions with the new government following the election.

The government instead applied for a fresh package, according to a June 3 statement from Ivo Krznar, the IMF mission chief for Bangladesh.

“The authorities’ request for a successor arrangement provides an opportunity for the Fund and the authorities to agree on a potential programme that both reflects the current challenges and incorporates the new authorities’ objectives and priorities.”

Any new arrangement would need to be based on Bangladesh’s balance-of-payments needs and strong policy commitments anchored by a credible reform agenda, and would be subject to the IMF’s policies and executive board approval, the statement added.

Subsequently, an IMF staff team visited Dhaka in July on a fact-finding mission.