The IMF postpones its decision on Bangladesh's $4.7 billion loan installment until March
The issue was scheduled for discussion during the IMF Executive Board meeting on February 5 but has been postponed to March 12, according to a BB official.
The disbursement of the fourth tranche of Bangladesh’s $4.7 billion budget support loan from the International Monetary Fund (IMF) has been delayed until March due to scheduling adjustments stemming from natural disasters.
According to a senior official of Bangladesh Bank (BB), the matter was initially slated for discussion at the IMF executive board meeting on February 5. However, the meeting has been rescheduled to March 12.
The delay is attributed to a month-long suspension of IMF activities caused by natural disasters.
The IMF has stipulated several conditions for the release of the loan. A key requirement is the liberalisation of the US dollar exchange rate, which the central bank is reportedly aligning with market trends.
Another critical issue involves revenue collection targets set for the National Board of Revenue (NBR). While IMF officials have expressed concerns about these targets, an NBR source stated that measures to boost revenue collection are already underway, with no major obstacles reported.
The fourth tranche, valued at $645 million, follows three previous disbursements under the loan program.
In the meantime, Bangladesh has sought an additional $750 million on top of the original $4.7 billion package. While the IMF has approved the increase, it has imposed stringent conditions, including improved revenue collection and structural reforms, such as separating tax collection from policy-making.
What's Your Reaction?
