IMF pulls back from new policy push

The International Monetary Fund backed away from plans to implement a controversial Policy Support Instrument deal Tuesday. "It is up to the government of Bangladesh to decide how it wants the IMF to help with reform efforts, and we look forward to continuing this dialogue," the IMF said in a statement. The decision comes in the wake of widespread criticism of the PSI arrangement which would have replaced the Poverty Reduction Growth Facility but without any financial commitments pegged to it. An IMF delegation, led by its Asia Pacific Department adviser Thomas Rumbaugh briefed the press in the conference room of Bangladesh Bank on the day of their departure.Rumbaugh said: "Through discussions with various levels of the government we have confirmed that Bangladesh does not need IMF policy assistance at the moment."