Dhaka seeks IMF loans as foreign exchange reserves falter: The Tribune India


Tribune press service

NEW DELHI, JULY 2

After Pakistan and Sri Lanka, another Indian neighbor, Bangladesh, is in talks with the International Monetary Fund (IMF) to shore up its foreign exchange reserves which are under pressure due to high commodity prices and the economic downturn. in its main export markets of the EU and the United States.

Dhaka is also seeking a $1 billion loan from the World Bank for the same purpose.

Bangladesh’s finance ministry, in talks for a $4.5 billion IMF buffer for its foreign exchange reserves, will send a delegation from Washington on July 12 for talks on what reciprocal terms it will have to agree to.

Some of the changes he will have to make are reforms in public sector banks, reduction of NPAs, development of capital markets and improvement of monetary and fiscal governance.

Pakistan is in trouble for failing to implement some of the conditions it agreed to when accepting an earlier IMF loan. This time, despite Pakistan’s foreign exchange reserves shrinking to less than $10 billion, the IMF has given no timetable as to when it will release the first $900 million tranche under its program. of $6 billion over three years. In its desperation to secure the loan, Pakistan on Friday announced politically unpopular changes such as higher taxes for the wealthy and a cut in fuel subsidies.

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