Requesting IMF loan doesn’t mean anything is wrong with economy: Finance Minister

Confirming Bangladesh's request for a loan from International Monetary Fund (IMF) Finance Minister AHM Mustafa Kamal has said that it does not mean the country's economy is in bad shape.

"I had to make my previous statement considering the perspective. I didn't want to expose our demands," he told reporters while briefing on a meeting of the Cabinet Committee on Government Purchase today.

Last Wednesday, after a similar meeting, the finance minister had said that Bangladesh didn't need an IMF loan and will not seek any funding support from the lending agency. But within days, it was reported that Bangladesh had sought a $4.5 billion loan from the IMF.

When he was questioned about his statement last week, Kamal said he had to make such a statement for strategic reasons.

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"If I expose my demand in advance, the burden and cost will be high on me," he said. "This is a bargaining point. Everyone has to do this," he added.

He, however, said no specific figure was quoted in the loan proposal sent to the IMF. "We will see first under what conditions they want to provide the loan, and how much we should take."

The government will also keep in mind that conditions provided under the loan do not go against the nation's interest, he added.

The IMF and the World Bank know about the country's economic situation and they know that Bangladesh is capable of repaying the loan, Kamal said.

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About the current dollar crisis in the market, the finance minister said the government has already taken steps to tackle the situation.

"If anybody or any section is found to be involved in creating an artificial crisis in the dollar market or is concealing information, action will be taken against them," he said.

Kamal said the main source of foreign exchange is remittance and export. Both remittance and export are increasing but alongside import is also rising.

"Dollar rate should be fixed on the basis of demand and supply," he said.