IMF queries Bangladesh Bank on reserves, banking reforms

This inquiry formed a significant part of discussions held at the Bangladesh Bank headquarters recently.

In addition to these core financial matters, the IMF team also expressed a keen interest in receiving the latest updates from the central bank on various fronts. Specifically, they requested progress reports regarding ongoing banking sector reforms, advancements in bank mergers, and updates on revenue management.

Despite this comprehensive review, the IMF team offered positive feedback during the initial meeting. They considered the actions undertaken by the central bank and associated organisations thus far as appropriate, signalling a vote of confidence in the current trajectory.

The IMF delegation also reportedly proposed a smaller national budget to mitigate the deficit.

Led by Chris Papageorgiou, chief of the Development Macroeconomics Division of the IMF Research Department, the eight-member delegation began the second review of the IMF's $4.7 billion loan programme, with the release of the third tranche contingent upon the visit’s outcome in June.

Meetings with key government institutions, including the finance division, Bangladesh Bank, and the National Board of Revenue (NBR), are scheduled until June 8.

The IMF, however, reportedly expressed disappointment over sluggish revenue sector reforms and voiced concerns regarding Bangladesh’s ability to achieve collection targets for the fiscal year ending June 2024.

ALCHEMPro News Desk (DR)