It is difficult for Bangladesh to get a loan by meeting all the conditions of the International Monetary Fund (IMF) due to the rampant corruption of the current government, said former IMF chief economist Dr Reza Kibria.
"If the IMF loans money to a country, it examines whether it can return the loan. So, the IMF wants an account of the country's reserves because its money comes from different countries around the world. So, they don't want to lend to anyone easily. The IMF has enough doubts about the current government's reserves," he said at a discussion arranged by Gonoshasthya Kendra Sunday (31 July).
Dr Reza Kibria, the convener of the Gono Odhikar Parishad, said that the IMF cannot give loans to any country without due process.
"It holds its first board meeting one month after the loan proposal and if everything goes well, even if all the conditions are met, it takes at least 5-6 months to get the money.
"If there is corruption with the money sent in the first few installments, the IMF often stops the flow, reduces the payment, and if there is less trust in the government, a lesser amount is given," he said.
The former IMF economist said that the root cause of all the crises in the country, including electricity and energy, is due to the corruption of the Awami League government.
He also claimed that the inflation rate in the country is over 12% but the government is hiding it.
Dr Reza Kibria noted that the government itself did not anticipate the reserves would decrease so soon and it would have to ask for a loan from the IMF.
"Taking money from the IMF is not a very good thing, because the IMF wants to give loans only when a country cannot run at all. The government is in this state because there is no alternative. It is going through a reserve crisis," he said.
Dr Reza Kibria also commented that the country's crises will not be resolved until the fall of the Awami League government.