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IMF retreats from signing PSI in Bangladesh September 19, 2007

Posted by bdoza in BANGLADESH, ECONOMY, IMF.
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IMF agreed with the Bangladesh Government stance of not signing PSI and said that it is not the right time to sigh the PSI.

 

IMF mission is on a visit to Bangladesh to discuss the PSI but amid the growing opposition from the Business community and Economist Bangladesh Bank Governor Mr. Salehuddin Ahmed said that there was discussion with IMF, but not necessarily we are going to accept their demands.We shall see what is good for us.

The Government has indicated that they are not interested in signing the deal now. The mission chief Thomas Rumbaugh also agreed that it is not the best time to sign the agreement.

PSI (policy support Instrument )is a new deal IMF wants to make with Bangladesh where IMF like to dictate the policy of the country without extending any loan. IMF is explaining it a step forward than the PRGF (Poverty Reduction Growth Facility) where the IMF gave loan along with the policy support though the loan was not yet totally disbursed. The Economists also expressed doubt about the success of PRGF.

The mission Head said that ‘People don’t have the right information of PSI’. He asked the journalist to check the facts. But it is not the common people who are opposing to the PSI rather the Economists and experts of the country with few exceptions have expressed strong reservation for IMF and PSI.

Regarding the double figure inflation the mission said that it is partly attributed to an increase in international food and commodity prices and partly due to delayed adjustments in monetary policy over the past year. But he didn’t acknowledged that the monetary policy of Bangladesh was so far formulated in the line of IMF policy. In the recent past, the Government was heavily criticized for the declaring new monetary policy’ by the business community but acclaimed by IMF.

IMF is still eager to sign policy deals with Bangladesh Government in future.

An ordinary citizen

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