An International Monetary Fund (IMF) team met with Bangladesh Bank in Dhaka on Tuesday to discuss the country's progress in executing strategies and on the latest updates on economic indicators.
Throughout the day, many departments of Bangladesh Bank provided several economic indicator updates and upcoming plans on IMF conditions.
Bangladesh has to meet 38 conditions to receive the IMF loan. Most of the terms are related to the financial sector. The financial sector again significantly comprises the banking sector, a large part of which is under the central bank.
The Governor of Bangladesh Bank was also present at Tuesday's meeting.
According to the central bank sources, the IMF team entered the Bangladesh Bank building at 9:30am on Tuesday and the meeting ended at 3pm.
However, the mission also scheduled meetings with the government's other financial departments, which will continue till May 2.
Bangladesh Bank Spokesperson and Executive Director Md Mezbaul Haque briefed the reporters about the meeting in the afternoon.
He said: “Bangladesh is moving towards a single rate in foreign currency exchange.”
Bangladesh Bank spokesperson also informed that there will be various instructions and announcements of financial sector reforms in the upcoming budget and monetary policy.
Regarding IMF conditions on reserve, he said: “The gross and net foreign exchange reserves will be published soon. Initiatives have also been taken to increase remittances and foreign loans to increase reserves.”
In the meeting, the IMF representatives were also informed about various initiatives including amending the Bank Company Act to reduce defaulted loans, Mezbaul Haque added.
Eight members of the donor organization participated in this meeting.
Earlier, he said: “They discussed and took updated information on various economic factors in scheduled meetings with the various departments of Bangladesh Bank. Yes, matters related to the progress in the use of the IMF's loan were also included.”
That time, he also informed that the staff visit is a routine part of the IMF's work. The visit is conducted every year, according to the agreement with the member states and this is no different.
According to the Bangladesh Bank sources, IMF's Dhaka office Chief (Resident Representative) Jayendu Dey sent a letter to various organizations last week, informing them about the visit of the IMF's staff consultation mission.
In the letter, he requested the heads of departments to prepare an updated report of Bangladesh's preparations to meet the conditions specified by the IMF against the loan programme.
However, An IMF mission will come to Dhaka in October for further progress assessment for the second tranche of loans under the $4.7 billion programme.
Before and after receiving the first tranche of $476.2 million on February 2 this year, Bangladesh took several steps to reform the structure of its financial sector and its policies as per IMF prescribed.
As per the condition, the entire amount of the loan will be paid in seven installments over three and a half years until 2026.