Bangladesh May Walk Away from Loan Deal If Conditions Are Imposed: Budget Seminar Statement
- Update Time : 01:42:26 pm, Saturday, 3 May 2025
- / 260 Time View
Bangladesh may withdraw from the IMF loan program if excessive conditions are imposed, according to Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser. Speaking at a budget seminar held on May 3 at the Bangladesh Agricultural Research Council in Dhaka’s Farmgate area, he stated that accepting too many IMF conditions could weaken the country’s economy further, and in that case, Bangladesh would reconsider its participation in the program.
As Bangladesh is set to receive final recognition as a developing country next year, agricultural economists at the seminar stressed the need for specific goals and increased budget allocation for agriculture. They also recommended reducing VAT and import duties on poultry feed ingredients and offering farmers loans and incentives under easy conditions.
Amid declining foreign exchange reserves, Bangladesh signed a $4.7 billion loan agreement with the IMF on January 30, 2023. The first tranche of $476.27 million was disbursed three days later, followed by a second installment of $682 million in December and a third of $1.15 billion in June 2024. Although the agreement includes six installments through 2026, uncertainty now surrounds the release of the fourth and fifth tranches.
