Bangladesh Seeks New IMF Loan Program to Support Economic Reforms

Bangladesh has formally requested a new loan program from the International Monetary Fund (IMF) to support the country's ongoing economic reform agenda. The request was conveyed through an official letter to the IMF, according to a statement issued on Wednesday by IMF Mission Chief for Bangladesh, Ivo Krznar.

The IMF noted that Bangladesh is currently implementing three IMF-supported programs: the Extended Credit Facility (ECF), the Extended Fund Facility (EFF), and the Resilience and Sustainability Facility (RSF). Since these programs were approved in January 2023, the country's macroeconomic and political landscape has changed significantly, making program implementation more challenging.

According to the statement, the government is now facing increasingly complex challenges, including weaknesses in the banking sector, low revenue collection, and a growing need for new and sustained reform initiatives.

The IMF said Bangladesh's request creates an opportunity to negotiate a potential new program that reflects current economic challenges while incorporating the priorities and objectives of the new government.

The statement emphasized that Bangladesh requires additional support to maintain external balance. However, any new arrangement would depend on strong policy commitments backed by a credible reform agenda and would require approval from the IMF Executive Board in accordance with the institution's policies.

Ivo Krznar said IMF officials are planning to visit Bangladesh soon to assess recent economic developments and discuss policy priorities with various stakeholders. The mission will also evaluate the country's economic outlook and reform-related challenges.

The upcoming discussions are expected to cover the size of a potential new IMF-supported program and the reform commitments that would accompany it, Krznar added.

The IMF reiterated its commitment to supporting Bangladesh in achieving long-term macroeconomic and financial stability, strengthening resilience, and promoting strong and inclusive economic growth.

Bangladesh had previously sought emergency IMF assistance in July 2022 to address balance-of-payments pressures and secure budget support. The IMF subsequently approved a loan package worth $4.7 billion. So far, Bangladesh has received $3.64 billion in five installments.

In June 2025, during the tenure of the interim government, the size of the loan program was increased by $800 million, bringing the total package to $5.5 billion. Under the current arrangement, Bangladesh is still expected to receive an additional $1.86 billion.

Prior to Eid-ul-Azha, on May 21, the Ministry of Finance announced that discussions had been held with the IMF regarding a new program. The proposed arrangement is expected to run for three years and will include priority-based and implementable reforms to be carried out in phases.

According to the Ministry of Finance, the new loan program could range between $4 billion and $4.5 billion.