IMF to provide US$ 1 billion to Bangladesh for implementation of PRS-II: Muhith
Dhaka, Sept 6 (UNB) - The International Monetary Fund (IMF) is likely to provide one billion US dollars to Bangladesh, almost without any interest, by next 2-3 three months for the implementation of the Poverty Reduction Strategy II (PRS-II) launched earlier this year.
“We’ve earlier sought their (IMF) assistance for implementation of the PRS-II. We hope to get US$ 1 billion from them in the next two to three months,” said Finance Minister AMA Muhith soon after an IMF delegation called on him at his Secretariat Office today (Monday).
IMF’s Director of Asia Pacific Department Anoop Singh led the delegation, which also included IMF Mission Chief David Cower and Resident Representative Eteri Kvintradze.
Talking to the reporters after the meeting, the Finance Minister said that the IMF delegation that came here is considering the proposal of the government and a decision is likely by this December or next January.
He said that the assistance would be free money, almost without any interest, and it could be used in different sectors. “We could use the money in agriculture, social safety net and road construction, etc.”
Muhith said that out of the total resource gap of US$ 6 billion for implementation of the PRS-II, US$ 1 billion is expected from the IMF.
Replying to a question, he said that there will be no need to change the policy of the government for implementation of the PRS-II as the government has clearly mentioned its policy to the donors before finalizing it.
Replying to another question, the Finance Minister said that assistance has also been sought from the IMF for the construction of the Padma Bridge.
He said the government’s first policy is to increase domestic resource mobilization, to increase public sector investment and to give emphasis largely on private sector investment.
“We’ve created fund for the Public-Private-Partnership (PPP) and finance from the local and foreign entrepreneurs would be needed there.”
The Finance Minister also targeted to increase country’s GDP growth rate to 8 percent in the next two years.
He, however, said that the IMF usually provides assistance when a country faces balance of payment problem. Bangladesh is not getting anything from the IMF at present as the country doesn’t suffer from any such problem.
“But, this is a wrong policy. A country like ours where there is no problem with balance of payment is an achievement as it refers to better debt portfolio management,” he added.
Muhith said that after the world economic recession, the IMF has redesigned their programmes and changed their operations and style as they now usually provides a big amount of assistance.
He said that the IMF assistance to Bangladesh earlier amounted to US$ 300-400 million with interest rate of 4-5 percent.
“We’ve earlier sought their (IMF) assistance for implementation of the PRS-II. We hope to get US$ 1 billion from them in the next two to three months,” said Finance Minister AMA Muhith soon after an IMF delegation called on him at his Secretariat Office today (Monday).
IMF’s Director of Asia Pacific Department Anoop Singh led the delegation, which also included IMF Mission Chief David Cower and Resident Representative Eteri Kvintradze.
Talking to the reporters after the meeting, the Finance Minister said that the IMF delegation that came here is considering the proposal of the government and a decision is likely by this December or next January.
He said that the assistance would be free money, almost without any interest, and it could be used in different sectors. “We could use the money in agriculture, social safety net and road construction, etc.”
Muhith said that out of the total resource gap of US$ 6 billion for implementation of the PRS-II, US$ 1 billion is expected from the IMF.
Replying to a question, he said that there will be no need to change the policy of the government for implementation of the PRS-II as the government has clearly mentioned its policy to the donors before finalizing it.
Replying to another question, the Finance Minister said that assistance has also been sought from the IMF for the construction of the Padma Bridge.
He said the government’s first policy is to increase domestic resource mobilization, to increase public sector investment and to give emphasis largely on private sector investment.
“We’ve created fund for the Public-Private-Partnership (PPP) and finance from the local and foreign entrepreneurs would be needed there.”
The Finance Minister also targeted to increase country’s GDP growth rate to 8 percent in the next two years.
He, however, said that the IMF usually provides assistance when a country faces balance of payment problem. Bangladesh is not getting anything from the IMF at present as the country doesn’t suffer from any such problem.
“But, this is a wrong policy. A country like ours where there is no problem with balance of payment is an achievement as it refers to better debt portfolio management,” he added.
Muhith said that after the world economic recession, the IMF has redesigned their programmes and changed their operations and style as they now usually provides a big amount of assistance.
He said that the IMF assistance to Bangladesh earlier amounted to US$ 300-400 million with interest rate of 4-5 percent.
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