Finance Adviser Dr Salehuddin Ahmed has said that the loan ceiling set by the International Monetary Fund (IMF) will not create any pressure on Bangladesh.
Speaking at his office in the Ministry of Finance today (30 September), he told The Business Standard that the government has already cleared $5 billion in foreign debts and outstanding bills since assuming responsibility, while reserves have risen to over $30 billion.
“We are being very cautious about taking foreign loans this year. No budget-support loans will be taken,” he said.
The adviser emphasised stronger revenue collection, noting that letters have been issued to tax evaders and corruption has reduced, boosting tax receipts. He added that during the IMF’s upcoming October board meeting, Bangladesh will not seek any additional loans from the IMF, World Bank, or ADB. Although China’s New Development Bank has shown interest in providing loans, Bangladesh has declined for now.
Salehuddin pointed out that excessive foreign borrowing could create a burden for the next government. Despite the IMF setting a loan ceiling of $1.91 billion for the first quarter of the current fiscal year, Bangladesh has drawn only about $300 million.
He further noted that budget-support loans often come with conditions that limit a country’s ability to make independent policy decisions.
Source: https://www.tbsnews.net/economy/imf-loan-ceiling-will-not-put-pressure-bangladesh-adviser-salehuddin-1249696
