Bangladesh is unlikely to get US$1.3 billion, due in two tranches, within this fiscal year from the $5.5-billion credit programme with the International Monetary Fund (IMF), finance officials say.
The uncertainty has been created as the IMF is showing less interest in sending a review team now since many of the conditions binding the loan package remained unmet now, they add.
"Unless the finance minister and his team, who are now in Washington to attend spring meetings of the IMF and World Bank, can convince the IMF bosses to send a review mission now, the possibility to get the two installments of the loan is very bleak," a senior finance division official told the FE Wednesday.
Sensing the IMF's stance regarding the loan disbursement, sources say, the finance division officials have suggested finance minister Amir Khosru Mahmud Chowdhury seek an additional $2.0 billion as emergency assistance from the IMF and the World Bank to offset the deficit created due to the crisis in the Middle East.
However, after the meeting, the minister did not say any word to waiting journalists as to whether the due tranches under the credit programme will be available in time or not.
According to the finance officials, a number of conditions under the original $4.7-billion loan programme, which was later extended to $5.5 billion, remained unfulfilled, which forced the IMF to take decision to delay the release.
The IMF this January, after conclusion of Article IV Consultation with Bangladesh, said: "Weak revenue mobilisation, banking-sector vulnerabilities, incomplete implementation of the new exchange-rate framework, and elevated inflation are weighing on macroeconomic stability and growth prospects."
The IMF board of directors also observed an uneven programme performance and emphasised that decisive and sustained policy actions and bold reforms were needed to restore macroeconomic and financial stability and support the country's long-term development goals.
"The performance criterion on government revenue collection was missed by a wide margin. The authorities have yet to adopt a high-level reform strategy for restoring banking-sector stability, as was agreed at the 3rd and 4th combined review," it said.
Also, the IMF said Bangladesh Bank would need to adjust its forex-intervention practices to meet conditionality on the exchange-rate arrangement. "While the primary deficit target was met, this was achieved through significant cuts in capital and social spending."
syful-islam@outlook.com