Staff Correspondent:

Finance Adviser Salehuddin Ahmed on Saturday (July 26) said the International Monetary Fund (IMF) has estimated that $35 billion will be needed to restructure Bangladesh’s banking sector.

“IMF had first estimated $18 billion would be needed but later raised the amount to $35 billion after seeing how serious the situation was,” he said.

The adviser made the remarks while speaking as the chief guest at a book launch and discussion event for Dr Hossain Zillur Rahman’s latest book “Orthoniti, Shashon O Khomota: Japito Jiboner Alekkho” held at the CIRDAP auditorium in the capital.

“Last August, when the interim government took over, it became clear that no country in the world was facing such a situation. The economy was in a state of collapse,” he said.

Mentioning that 80% of the banking sector’s funds had been taken away, Salehuddin said, “If the total bank outstanding was Tk20,000 crore, Tk16,000 crore was gone.”

The adviser mentioned that there are hardly any well-functioning institutions left.

The system has been damaged, he noted, adding that the same people are still in charge and they haven’t changed.

“Some say to remove everyone, but that is not possible. So, we are trying to make them work by either gently persuading or scolding them,” he said.

The finance adviser said that good governance is very difficult and there is no check and balance on the power of the prime minister or MPs.

“Without reforms in this sector, no matter how many reforms are made, it won’t help. Even political parties need to be reformed,” he added.