IMF loan ceiling won't put pressure on Bangladesh: Dr Salehuddin

Finance Adviser Dr Salehuddin Ahmed has said that the loan ceiling set by the International Monetary Fund (IMF) would not create any pressure on Bangladesh.

Speaking at his office in the Ministry of Finance today, he said that the government has already cleared US$5 billion in foreign debts and outstanding 
bills since assuming responsibility, while reserves have risen to over $30 billion.

"We're being very cautious about taking foreign loans this year. No budget-support loans will be taken," Salehuddin said.

The Finance Adviser also emphasized stronger revenue collection, noting that letters have been issued to tax evaders and corruption has reduced, boosting 
tax receipts.

During the IMF's upcoming October board meeting, Bangladesh would not seek any additional loans from the IMF, World Bank, or Asian Development Bank  (ADB), he added.

He said although China's New Development Bank has shown interest in providing loans, Bangladesh has declined for now.

Dr Salehuddin Ahmed, also a former central bank Governor, pointed out that excessive foreign borrowing could create a burden for the next government. 

Despite the IMF setting a loan ceiling of $1.91 billion for the first quarter of the current fiscal year, Bangladesh has drawn only about $300 million.

He further noted that budget-support loans often come with conditions that limit a country's ability to make independent policy decisions.