IMF releases $141m instalment of ECFStaff Correspondent
International Monetary Fund on Wednesday released the first instalment of $141 million of around $1 billion loan sanctioned for Bangladesh under its Extended Credit Facility.
A senior official of the BB told New Age on Wednesday that the central bank had received the first instalment of the credit facility on behalf of the government on the day.
Earlier on April 12, the IMF approved a $987 million loan to Bangladesh under its ECF to ‘help’ the country overcome macroeconomic pressures.
The loan, under a three-year arrangement, was approved by the IMF executive board at its meeting in Washington DC, and will be given in seven equal instalments in three years.
After getting the first instalment, the country’s forex reserve increased slightly to $10.15 billion on Wednesday from around 10.07 billion on Tuesday.
The BB official said Bangladesh government had sought the credit to improve the country’s overall balance of payment (BoP) position as the trade deficit kept on increasing every year.
Meanwhile, some leading economists earlier warned that the IMF loan under its extended credit facility would go against the country’s sovereignty as the lenders imposed a number of tough conditions.
Under the loan facility, the IMF had earlier set a number of conditions including increase of fuel prices, amendment to the Bank Companies Act and forming a new Vat law.
The IMF officials on Wednesday said the country would reform its fiscal policy, monetary and exchange rate, financial sector, and trade and investment arena.
The country will raise the tax revenue through tax law reform and will make a new VAT law, they said at a press conference at the conference room of Bangladesh Bank in the capital.
They suggested that the subsidy costs for fuel and electricity would be removed gradually as those had intensified the country’s fiscal pressure.
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