Following the IMF, the World Bank and ADB are interested in helping the government with its budget. A 1.7 billion dollar idea has already been talked about. It intends to collect at least $7 billion over the following three years.
According to the planning division, Bangladesh’s ability to borrow money abroad has increased. The cost of these debts is also lower when you include in the interest rate. The government is therefore talking about all potential sources. However, according to analysts, the economy won’t be significantly affected if the advantages of borrowing from foreign partners are not realized promptly.
Prior to this, there was little commotion about the IMF loan. To prevent strain on reserves, a proposal for 4.5 billion dollars has already been submitted. A group from the organization recently visited Bangladesh to assess the situation. presently anticipating the IMF’s return proposal. Other development partners then showed up with loans. Additionally, they want to support the budget. Various departments of finance, planning, and revenue departments have already had discussions.
At first, it was suggested that in addition to the IMF, the Asian Development Bank (ADB) could contribute $100 million. The World Bank may contribute 70 million dollars. Additionally, the government and the Asian Infrastructure Development Bank have discussed budget help (AIIB).
Shamsul Alam, State Minister of Planning, stated that we currently pay barely 1.1 percent of our national revenue. We can still proceed even if we lower it to 3 percent. There are distinctions among these organizations interested in aid; the IMF has the lowest level of interest, whilst the World Bank has a moderate level. All things, however, fall below our two to two and a half percent. But on the global market, it is relatively affordable.
Bangladesh spends 30,000 crore Tk on fuel oil on average every year. However, the cost has now multiplied several times as a result of the Russian-Ukrainian war. Due to the low production, China and Japan are beginning to feel some respite. On Monday, the price of Brent crude dropped by over $1 per barrel (August 1). Does Bangladesh require foreign loans for reserves, is the question.
