Bangladesh working to implement IMF conditions to get $4.5b loan

Bangladesh government is working to gradually implement almost all conditions of the International Monetary Fund (IMF) to get a US$4.5 billion loan from the Washington-based lender, to meet the foreign exchange crisis, said a senior official of the finance ministry on Monday. As per the conditions, Bangladesh Bank (BB) will leave control of the Bangladesh currency’s exchange rate with the US dollar to the floating market. The BB also includes allowing the private sector to import fuel and increasing electricity prices at the retail level, reports UNB. Besides, a long-term plan will be made to make the prices of imported goods, including energy products, use-based and to increase the tax-GDP ratio. A decision has already been taken from the highest level of the government regarding the implementation of these conditions, said the official speaking on condition of anonymity as he is not authorised to talk to the media. The IMF has suggested major reforms in the banking sector. However, the government is yet to take any major steps in this regard. Rather the government instructed the central bank to initiate a limited phase of the reform process. Bangladesh has sought a loan of $4.5 billion from the IMF to deal with the global recession and the negative impact on the country’s overall economy and the foreign exchange crisis. An IMF mission visited Bangladesh from October 26 to November 9 to discuss the loan issue.

Source: https://thefinancialexpress.com.bd/economy/bangladesh-working-to-implement-imf-conditions-to-get-45b-loan-1673272603

Bangladesh expands cargo carrying capacity by sea

Bangladesh’s entrepreneurs, encouraged by prospects, tax and VAT benefits, expanded their capacity in oceangoing shipping sector, with the total number of vessels rising to 91, the highest so far, at the end of 2022 from 80 ships a year ago. With the increase, oceangoing ships now have a carrying capacity of nearly 30 lakh tonnes, said industry insiders yesterday. Tax exemption on income earned by oceangoing vessels carrying the Bangladeshi flag until 2030 and value added tax (VAT) exemption on the import of vessels of up to 25 years old attracted investment in the sector over the last couple of years.

Source: https://www.thedailystar.net/business/economy/news/bangladesh-expands-cargo-carrying-capacity-sea-3216916

Sending workers to Japan rises

Two of the government’s 28 Covid-19 stimulus packages saw a fresh injection of Tk 50,000 crore in the ongoing financial year, but only 4 per cent of the fund was disbursed between July and October. The two packages each aimed at providing working capital to large industries and service sector firms and cottage, micro, small, and medium enterprises (CMSMEs) saw a collective disbursement of Tk 2,151 crore as of October, according to a finance ministry report. Officials said many of the borrowers who already took loans under the stimulus packages in the previous two rounds have not paid back. So, they have not qualified for fresh loans from the allocations made in the latest round.

Source: https://www.thedailystar.net/business/economy/news/stimulus-large-small-industries-tk-50000cr-fresh-funds-see-tepid-disbursement-3215996