Bangladesh Resists IMF Pressure on Unified VAT

• Bangladesh declined to provide a timeline to the IMF for cutting the policy interest rate or implementing a unified VAT rate.
• Meetings were held between the IMF delegation and key economic policymakers in Bangladesh.
• Finance Adviser Salehuddin Ahmed stated that the unified VAT rate would be implemented gradually.
• Bangladesh is balancing reform commitments under the IMF loan program with domestic political and economic realities.
• No specific timeline was given for interest rate cuts; the central bank is waiting for inflation to ease.
• The IMF inquired about the policy rate reduction, and the central bank will consider it once inflation falls to 8%.
• The IMF expressed concern about revenue collection but was satisfied with ongoing reform initiatives.
• The IMF held meetings with Bangladesh Bank departments, focusing on the liquidity situation in banks.
• The IMF was informed that liquidity support was provided to banks, reducing the number facing issues.
• The IMF was dissatisfied with the use of Promissory Notes for liquidity support.
• Banks facing liquidity crises have stopped issuing loans.

Source: tbsnews.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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