The International Monetary Fund (IMF) will release $1.1 billion – the fourth tranche of its $4.7 billion loan package -by March of this fiscal year, Finance Adviser Salehuddin Ahmed said yesterday (3 December). He shared the update with reporters after a meeting with a visiting IMF delegation at his office in Dhaka.
According to the adviser, the IMF sought details about Bangladesh’s current and future strategies regarding revenue collection, fiscal deficits, and stressed assets in the banking sector, among other concerns.
In response, Salehuddin assured the IMF team that the measures being undertaken by the interim government are designed to benefit the country’s future. With Bangladesh facing higher inflation for a
long time, the International Monetary Fund (IMF) has advised keeping the policy interest
rate on the rise until inflation decreases.
Bangladesh Bank Spokesperson and Executive Director Huseara Shikha hinted this while talking to reporters at her office yesterday (3 December). An IMF delegation led by mission Chief Chris Papadakis arrived in Dhaka yesterday to review the IMF conditions.
The IMF says that inflation in Bangladesh is currently above 11%. It will remain around 10% throughout 2025, and after that, the international donor agency believes it
may come down to 6-7%. The fourth tranche of the $4.7 billion loan program depends on fulfilling the conditions given by the global lender.
The IMF imposed conditions on Bangladesh for providing this loan. Although almost all the conditions given by the lender are on track to be met, it is well behind the revenue collection target. However, the
installment has already been released after showing progress in fulfilling most of the conditions.
Earlier in January 2023, the IMF approved a $4.7 billion loan for Bangladesh. It was supposed to provide this loan to Bangladesh subject to conditions.
