At the same news conference, Mustafa Kamal said the Washington-based global lender will disburse the funds in seven tranches by 2026, with the first tranche being available in February 2023.
“We are going to get the IMF loan as requested. They [the IMF] Attached the necessary conditions, which we ourselves initiated,” he said.
On loan terms, the minister said reserve management, inflation and reforms to ensure good governance in the financial sector were the most discussed issues during the staff-level mission’s visit.
In response, the finance minister insisted that Bangladesh was already working on an amendment to the Bank Companies Act. “There was a delay in implementing the VAT law, but it will be done. The process of setting up an asset management firm is underway.
Kamal indicated to maintain the nine per cent cap on the lending rates of banks. “It’s my idea. I bought it. No business can survive without it.”
During the talks, the central bank had to explain to the IMF its method of calculating foreign exchange reserves after the global financial institution questioned the calculation, making the number appear larger than the agency’s latest manual.
Bangladesh’s approach to the IMF comes as neighboring Sri Lanka and Pakistan have also sought aid from the global lender after being hit by inflation, dwindling foreign reserves and subsequent political turmoil.