No deal with IMF before next general election
Tuesday, 30 October 2007
Shakhawat Hossain
The government is unlikely to strike a fresh deal with the International Monetary Fund (IMF) on the extension of the poverty reduction growth facility (PRGF) or any other lending arrangement before the next general election.
"The caretaker government (CG) has taken decision not to pursue any formal economic reform programme supported by the Fund's resources until the next general election," IMF resident representative Jonathan C. Dunn told the FE Monday.
Holding the next general election by December 2008 is the single most important goal of the present caretaker administration and a message to this effect has already been communicated to the IMF.
"We support the interim administration's efforts to take Bangladesh again to the path of democracy," he added.
As the Poverty Reduction Growth Facility (PRGF) expired June last, the country will now have to wait more than one year to strike any new loan agreement with the IMF.
The issue on new agreement between the IMF and the country, according to Dunn, was also discussed at the just concluded IMF annual meeting held in Washington.
But the Bangladesh delegation comprising the finance and planning adviser, the central bank governor and secretaries of the finance and the economic relations divisions at the meeting expressed the desire to delay a new deal with IMF until the next general election, he added.
However, Bangladesh officials opted for receiving technical assistance under the surveillance and Article IV consultation role that the IMF conducts with all 184 of its member countries.
"We will continue Article-IV consultation to provide technical assistance to help creating the capacity for implementing reforms in those areas the government wants to pursue," Dunn said.
According to the IMF resident representative, there were two other options available for Bangladesh for possible future programme support by the IMF.
The first one was a new PRGF arrangement and the second one was relating to the support through the Policy Support Instrument (PSI).
The country needs the IMF technical assistance to review its economy to attract overseas aid which is necessary to help implement the Tk 265.00 billion annual development programme (ADP) in the current fiscal.
Without technical assistance from the IMF, it will be difficult for the country to release proposed funding commitment by the lending agencies to implement the ADP.
The government is unlikely to strike a fresh deal with the International Monetary Fund (IMF) on the extension of the poverty reduction growth facility (PRGF) or any other lending arrangement before the next general election.
"The caretaker government (CG) has taken decision not to pursue any formal economic reform programme supported by the Fund's resources until the next general election," IMF resident representative Jonathan C. Dunn told the FE Monday.
Holding the next general election by December 2008 is the single most important goal of the present caretaker administration and a message to this effect has already been communicated to the IMF.
"We support the interim administration's efforts to take Bangladesh again to the path of democracy," he added.
As the Poverty Reduction Growth Facility (PRGF) expired June last, the country will now have to wait more than one year to strike any new loan agreement with the IMF.
The issue on new agreement between the IMF and the country, according to Dunn, was also discussed at the just concluded IMF annual meeting held in Washington.
But the Bangladesh delegation comprising the finance and planning adviser, the central bank governor and secretaries of the finance and the economic relations divisions at the meeting expressed the desire to delay a new deal with IMF until the next general election, he added.
However, Bangladesh officials opted for receiving technical assistance under the surveillance and Article IV consultation role that the IMF conducts with all 184 of its member countries.
"We will continue Article-IV consultation to provide technical assistance to help creating the capacity for implementing reforms in those areas the government wants to pursue," Dunn said.
According to the IMF resident representative, there were two other options available for Bangladesh for possible future programme support by the IMF.
The first one was a new PRGF arrangement and the second one was relating to the support through the Policy Support Instrument (PSI).
The country needs the IMF technical assistance to review its economy to attract overseas aid which is necessary to help implement the Tk 265.00 billion annual development programme (ADP) in the current fiscal.
Without technical assistance from the IMF, it will be difficult for the country to release proposed funding commitment by the lending agencies to implement the ADP.