Back to news
Bangladesh to receive $1.3 billion from IMF as reform deal reached
@Source: brecorder.com
DHAKA: The International Monetary Fund (IMF) is set to release $1.3 billion to Bangladesh in June, after completing a fourth review of its $4.7-billion loan programme and a key breakthrough in talks on exchange rate reforms, the finance ministry said.
The funds, covering both the fourth and fifth tranches, had been held up as the IMF pressed for greater exchange rate flexibility, particularly the adoption of a crawling peg mechanism.
The fourth review in Dhaka in April was followed by further discussions during the Bank-Fund Spring Meetings in Washington DC that month, focused on critical reforms in revenue management, fiscal policy, and the foreign exchange regime.
“After carefully reviewing all the issues … both parties have agreed on the revenue management, currency exchange rate and other reform frameworks,” the finance ministry said in a statement on Wednesday.
With completion of a staff-level agreement on the fourth review, the IMF is expected to release $1.3 billion set for the fourth and fifth installments together by June, it added.
IMF says it concludes visit to Bangladesh
The government has also dissolved the National Board of Revenue (NBR), replacing it with two divisions under the finance ministry, to meet a key IMF condition.
One division will handle tax policy with the other managing tax collection and administration, aiming to enhance efficiency, transparency, and accountability, the government said.
In addition to the IMF funds, the government expects budget support of $2 billion from development partners, the finance ministry added.
These bodies include the World Bank, the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), Japan, and the OPEC Fund for International Development, it added.
Bangladesh turned to the IMF in 2023 for the $4.7-billion bailout as its foreign reserves were pressured by a global surge in commodity prices triggered by Russia’s invasion of Ukraine, straining its ability to pay for key imports of fuel and gas.
The South Asian nation previously received $2.3 billion across the first three tranches.
An interim government led by Nobel Peace laureate Muhammad Yunus took office in August after the ouster of former prime minister Sheikh Hasina following deadly protests.
Related News
07 May, 2025
Waratahs coach wields axe for must-win R . . .
18 Mar, 2025
Sam Thompson set for awkward run in with . . .
30 Mar, 2025
After Pure Storage, CIA-backed VC invest . . .
01 Apr, 2025
NFL Draft: Giants trade down in latest E . . .
01 Mar, 2025
Government must reassure Foreign Office . . .
23 Mar, 2025
EastEnders fans ask why star has disappe . . .
26 Feb, 2025
Diet Coke, Longtime Favorite of 'It Girl . . .
14 Apr, 2025
Milan Design Week: interiors heading for . . .