Dhaka, Aug 29 (Agency) The Bangladesh government is seeking up to $8 billion in budget support from development partners, including the International Monetary Fund (IMF), by December to repay foreign liabilities and enhance foreign exchange reserves, media reports said. The government is also seeking funding from the Asian Development Bank (ADB) and the World Bank for rehabilitation programs in flood-damaged regions, The Daily Star said. Based on a primary assumption of loss and damage, the government has sent a letter to the ADB, requesting $300 million for flood rehabilitation. It will seek a bigger amount from the World Bank, but a formal request has not been made yet, according to the media reports. Of the budget support, $3 billion is expected to come from the IMF on top of the global lender’s existing $4.7 billion loan programme.
According to the officials of the finance ministry and the Bangladesh Bank, the Bangladesh government plans to seek $5 billion from various development partners, including the World Bank, ADB, Japan International Cooperation Agency (JICA) and the Asian Infrastructure Investment Bank (AIIB). Bangladesh Bank Governor Ahsan H Mansur recently announced plans to seek $3 billion from the IMF. The IMF staff mission is likely to visit Bangladesh to discuss the loan towards the end of next month. After the visit, Bangladesh will formally send a letter to the IMF, seeking the additional loan, officials said. The IMF has so far released $2.3 billion under the $4.7 billion loan programme since its approval in January last year, reports said. After the interim government took charge, the World Bank and the ADB held separate meetings with the finance adviser, the energy adviser, and the central bank governor. Bangladesh sought more budget support from them during the meetings but did not specify any amount. The energy adviser during meetings with the World Bank and the ADB sought $1 billion as immediate budget support, according to officials familiar with the development.