Bangladesh not to get IMF loan due to poor revenue growth

Bangladesh is not going to get the last installment of the International Monetary Fund (IMF) loan of 123 million U.S. dollars for Poverty Reduction Growth Facilities ( PRGF) mainly due to its poor performance in revenue collection.

The IMF Board met in Washington on Friday where the proposal for the seventh installment loan to Bangladesh was not placed, local newspaper The Daily Star reported.

Despite various reforms in different sectors, the IMF is not satisfied with the revenue growth in the last few years.

One of the performance criteria for the IMF loan is increase of revenue by 0.5 percent against the GDP growth, but Bangladesh failed to achieve the target.

The agreement for PRGF was signed in June 2003 and so far in six installments the IMF has given 467 million dollars to Bangladesh under strict conditions.

Source: Xinhua