The loan amount and conditions are expected to be finalised during staff-level negotiations following an IMF staff mission to Bangladesh later this month.
Abul Kashem from Bangkok
15 October, 2026, 05:20 pm
Last modified: 15 October, 2026, 05:45 pm
Highlights:
- Talks with IMF fruitful: Finance Minister
- Bangladesh hopes to sign IMF loan deal in December
- IMF prioritises revenue mobilisation
- Cenbank to submit plan to restore depositor confidence
- Bad loans climb to 33%, new IMF deal's target undecided
Bangladesh is seeking a $4.5 billion loan from the International Monetary Fund (IMF) in six instalments from December this year through December 2029, with a loan agreement expected to be signed by the end of this year.
Senior officials of the Bangladesh delegation expressed optimism about the timeline after what they described as "fruitful discussions" with IMF Deputy Managing Director Nigel Clarke in Bangkok today (15 October).
The loan amount and conditions are expected to be finalised during staff-level negotiations following an IMF staff mission to Bangladesh later this month, a delegation official told The Business Standard.
The delegation presented plans for banking sector reforms, including measures to restore depositor confidence and reduce non-performing loans (NPLs), the official said.
Deposits of customers of troubled Sammilito Islami Bank are already being repaid, while National Bank began returning deposits yesterday, as the government seeks to restore confidence in distressed banks through regular repayments, the official said.
The delegation is also preparing a strategy to reduce bad loans across the banking sector.
Under a loan agreement signed with the IMF in 2023 during the Awami League government, Bangladesh committed to bringing the NPL ratio down to 10% by 2026. Instead, the ratio has risen to around 33%.
The target for reducing the NPL ratio under the proposed new loan agreement has yet to be determined, the official said.