Bangladesh IMF new programme framework agreed

Bangladesh and the International Monetary Fund have agreed on the broad framework for a new lending programme, with reforms to be introduced gradually to reflect the country's tough economic conditions. The South Asian nation is negotiating a replacement for its existing $5.5 billion IMF bailout after the newly elected government opted to exit the previous programme, saying some of its conditions were inconsistent with its priorities. Finance Minister Amir Khasru Mahmud Chowdhury announced the agreement after meeting an IMF fact-finding mission led by Ivo Krznar. The IMF endorsed the government's phased approach to reforms, acknowledging the need to protect public welfare. The IMF delegation expressed satisfaction with progress in financial sector reforms, revenue collection, and capital market development during the government's first four months. Detailed negotiations on subsidies and other policy conditions have yet to begin. The next round of talks is expected during the IMF and World Bank Group annual meetings in September or October.