IMF approves disbursement of $1.3b
The International Monetary Fund on Monday approved the release of about $1.3 billion to Bangladesh under its $4.7 billion loan programme soon.
The board of executives of the Washington-based multilateral lender made the decision at a meeting in the morning (Washington time), according to a message received by the Bangladesh finance ministry in Dhaka in the evening.
The approval will pave the way for the release of fourth and fifth trances in June.
The multilateral lender had disbursed $2.3 billion in three tranches until June 2024 under the loan programme initiated in 2023 by the Awami League government before being ousted on August 5, 2024, in a mass uprising.
In May, the disbursing of the two tranches at once was agreed at a staff-level review by the IMF mission in Dhaka following reforms brought about by Bangladesh in the areas of revenue and exchange rate.
The interim government has introduced floating exchange rate and created Revenue Policy Division and Revenue Management Division by splitting the National Board of Revenue.
Finance adviser Salehuddin Ahmed on Sunday expected the availability of extra $3.5 billion, including the IMF’s $1.3 billion, as budget support from the multilateral and bilateral lenders before the end of the 2024-25 financial year on June 30.
The IMF loan will help strength the foreign exchange reserves which are hovering over $20 billion as per BPM6, the sixth edition of the Balance of Payments and International Investment Position Manual.
