Bangladesh has opposed an IMF proposal to monitor the flows of non-concessional loans by low income countries (LICs).

The International Monetary Fund wants to monitor the credit flows under a fresh proposal on debt monitoring policy.

“We opposed the proposal seriously,” Finance Minister AMA Muhith told reporters, after a meeting with visiting IMF’s South Asia Executive Director Rakesh Mohan at the Ministry of Finance in Dhaka yesterday. “This is not the jurisdiction of IMF and I do not want it by IMF.” 

He said the World Bank now monitoring the non-concessional loans and should continue. He, however, said there would be no serious damage if the IMF looks after the non-concessional loan.

Replying to question, the minister said the country’s repayment performance of foreign credit is comparatively better than other countries and it has become a culture of Bangladesh.

The finance ministry worked prudently for last 42 years in repayment of the foreign loan, including the works performed by the hardcore loan committee set up by me 25 years ago.   

Rakesh praised the country’s macroeconomic situation and said it showed creditable progress with holding stable macroeconomic status. He said the foreign exchange reserve and positive balance of payment helped the country maintain a nice economic situation.