ADB asked finance advisor about IMF, says ministry

The Asian Development Bank (ADB) has questioned Finance Advisor Salehuddin Ahmed about the International Monetary Fund (IMF).

According to a media statement of the finance ministry on Sunday, the ADB had “asked” him about this during its annual meeting in Italy.

Yingming Yang, the vice-president (South, Central, and West Asia) was present in the meeting in Milan, the statement added.

Salehuddin was quoted as saying, “We have asked them (ADB) to waive what they were supposed to give in terms of budget support. They then asked about the IMF. We told them that discussions with them are in progress.

“They want the involvement of the private sector (in the budget). In this case, we have IDCOL (Infrastructure Development Company Limited), BIF (Bangladesh Industrial Finance Company Ltd), and IFC (International Finance Corporation); we have talked to them.”

Like other development organisations, the ADB also provides budget support in Bangladesh in addition to supporting different projects.

In December, the World Bank and ADB jointly approved $1.1 billion in budget support for Bangladesh, with the ADB accounting for $600 million.

The financial advisor said, “They (ADB) have asked about the macroeconomic situation. We are discussing this issue. Hopefully, it will be resolved.

“However, the IMF says that they would be reassured if they received a letter stating that we are doing well in the macroeconomic situation. We said we would provide that. But not right away, gradually.”

Salehuddin said, “The ADB will support our project, including the reforms in the banking sector and the NBR (National Board of Revenue). We need budget support more than project support.”

Asked if ADB has offered any assistance in the short term, he said: “We are assured of one thing about budget support. Their soft landing window is gradually opening. But we have become accustomed to it.”