Bangladesh requests new IMF loan to support reform agenda

Bangladesh has formally approached the International Monetary Fund for a new financial arrangement aimed at reinforcing its macroeconomic reform efforts, the IMF confirmed on Wednesday.

In a statement, IMF Mission Chief for Bangladesh Ivo Krznar said discussions have begun on the policy framework and structural priorities that would underpin the proposed funding package. The request comes as the country reassesses its economic strategy amid shifting domestic and global conditions.

Bangladesh has been operating under an IMF-supported programme approved in January 2023, which combined support under the Extended Credit Facility, Extended Fund Facility and Resilience and Sustainability Facility. According to the IMF, that programme has played a key role in guiding economic policy.

However, the Fund noted that Bangladesh’s economic and political context has changed significantly since the programme’s launch. Rising vulnerabilities in the banking sector and persistent weaknesses in revenue collection have emerged as major structural concerns requiring renewed focus.

The IMF said any new arrangement would be aligned with the reform priorities of the current administration and tailored to present economic realities. It stressed that approval of fresh financing would depend on Bangladesh’s balance of payments needs, the strength of its policy commitments and the credibility of its reform plans. Final clearance would require endorsement by the IMF Executive Board.

As part of the process, an IMF staff team is expected to visit Dhaka to assess recent macroeconomic developments, review policy objectives and evaluate emerging economic risks. Detailed negotiations over the size, structure and conditions of the potential package will follow during formal discussions.

The Washington-based lender reiterated its commitment to supporting Bangladesh in restoring macroeconomic stability, strengthening financial sector resilience and promoting sustainable and inclusive growth.