The visiting delegation from the International Monetary Fund (IMF) suggested that the government should start utilizing foreign aid currently unused for delays in project implementation.
The global lender also suggested Bangladesh deposit in its treasury an amount equivalent to stalled interest payments against the $11.38 billion borrowing from Russia, a move that may lower the country's forex reserves further.
Officials said two installments of interest payments have been halted since last fiscal following payment restrictions to Moscow for US dollar sanctions in retaliation for Russia's Ukraine war.
The visiting IMF delegation offered the suggestions when they met the Economic Relations Division (ERD) on Monday at the ERD office, discussing a wide range of financial and economic issues.
ERD Secretary Sharifa Khan attended the meeting.
According to the ERD, the foreign assistance in the pipeline was recorded at around $48.46 billion as of last FY22.
The official said the IMF team also wanted to know about the government's requirement of budgetary support from other multilateral and bilateral development partners in addition to the proposed IMF loan.
They also enquired about the debt-repayment strengths of Bangladesh in the future days.
ERD briefed the IMF team on Bangladesh's total debt, its repayment capacity, debt sustainability, future target of foreign aid and the like.
Meanwhile, the delegation in another meeting on the day inquired about the reforms carried out to make Bangladesh's investment climate friendlier to attract more investments.
The delegation, which is now scrutinizing the financial health of the country before deciding on a budget- support loan, talked to officials of the Bangladesh Investment Development Authority (Bida) at its office.
Also, the IMF officials wanted to know what other reform measures are underway and the future reform plans, sources said.
Sources said the now-defunct ease-of-doing-business index of the World Bank came into discussion at the meeting.
Bida officials informed the IMF team that the authority has been preparing a similar index to keep a tally of what has been done so far and what more needs to be done in the future to make investment attractive in Bangladesh.
