IMF agrees to release $650mn for Bangladesh’s fourth loan tranche

Bangladesh reaches agreement with the international lender on additional $750mn funding

The International Monetary Fund, or IMF, has agreed to release $650 million for Bangladesh as part of the fourth tranche of its loan programme.

In addition, the international lender has reached a staff-level agreement with the Bangladesh to provide an extra $750 million in funding.

The additional financing aims to support the country’s foreign currency reserves, facilitate financial sector reforms, and help manage increasing economic pressures.

If approved by the IMF Executive Board, Bangladesh's total loan amount under the programme will increase from $4.7 billion to $5.3 billion.

As per the earlier plan, Bangladesh was scheduled to receive the loan in equal instalments by 2026.

The IMF team announced the agreement in a press release on Wednesday, following discussions with different government agencies, including the Bangladesh Bank, during their visit to Dhaka.

The release of the fourth tranche and approval of the new loan will depend on the decision of the IMF Executive Board, which will review the delegation's findings in an upcoming meeting.

The Washington-based financial institution concluded its meetings with policymakers and officials after a 13-strong delegation, headed by Chris Papageorgiou, assessed the implementation of policies during their visit from Dec 4 to Dec 18.

“Following the evaluation of the third tranche, we have reached an understanding with the Bangladeshi authorities on implementing the required policies. The final decision rests with the IMF Board,” said Chris.

Bangladesh Bank spokesperson Husne Ara Shikha confirmed to bdnews24.com that the country will receive $650 million in the fourth tranche.