IMF Loan

Bangladesh Seeks $1.5Bn Out Of $4.5Bn in First Phase: Finance Min

Desk Report

Published: 09 Aug 2022, 08:39 pm

Finance Minister AHM Mustafa Kamal || File Photo

Finance Minister AHM Mustafa Kamal || File Photo

´╗┐´╗┐Bangladesh seeks a total of 4.5 billion US dollars from the International Monetary Fund (IMF) to finance projects to combat the effects of climate change and to cover budget deficits. Which is like Tk 42 thousand 750 crore in local currency (95 taka per dollar).

Under this package, Bangladesh has sought $1.5 billion from the organization in the first installment. This money is equal to about Tk 14 thousand 250 crore of Bangladesh. Finance Minister AHM Mustafa Kamal said these things to FTD.com.

Meanwhile, the IMF said, the total amount of loans that can be given to Bangladesh has not been finalized yet. Discussion is going on in this regard.

Finance Minister Mustafa Kamal said that Bangladesh is now seeking $4 billion from the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and Japan International Cooperation Agency and other multinational and bilateral lenders. He mentioned that he is optimistic about getting these loans from donors.

Finance Minister said, everyone is suffering, we are also under pressure. However, Bangladesh is not in danger of defaulting like Sri Lanka. Don't even think about such a situation.

Meanwhile, the finance minister has shown a cautious attitude about borrowing through China's Belt and Road Initiative (BRI). He warned developing countries that China should at least think twice before taking BRI loans.

Because global inflation and slowing growth are putting pressure on indebted emerging nations.

Finance Minister AHM Mustafa Kamal also said that poor borrowing decisions risk pushing indebted countries into crisis. For that, China needs to focus on evaluating their loans. Pointing to Sri Lanka, he said Chinese aided infrastructure projects have failed to deliver the desired results and have exacerbated the economic crisis in Sri Lanka.

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