IMF funds will not be available in March, with a proposal for two tranches expected in June, according to the Finance Adviser

The fourth tranche of the ongoing USD 4.7 billion (USD 470 crore) credit program from the International Monetary Fund (IMF) will not be available in the near future. Initially, the proposal was scheduled to be presented at the IMF executive board meeting on February 5, but it was postponed to March 12. However, it has now been further delayed and is set to be presented in June.

Finance Adviser Salehuddin Ahmed shared this update with journalists on Monday after the finance ministry session during the second day of the deputy commissioners (DC) conference. The fourth installment, amounting to USD 685 million (USD 68 crore 50 lakh), is expected. The finance adviser also noted that a joint proposal for the disbursement of both the fourth and fifth tranches will be submitted to the IMF board in June.

He explained, “We have indicated that there are certain tasks we need to complete, so there is no rush. Let me clarify, we are not simply asking for money. We must meet several conditions and receive funds based on our needs. It’s not just about agreeing to conditions and fulfilling them right away.”

Salehuddin Ahmed emphasized, “Our current macroeconomic situation is stable. The current account, financial account, and remittance flows are positive. So, there’s no urgency.” When asked about the possibility of presenting the proposal to the IMF board in March, the finance adviser confirmed, “Not in March. We have decided to wait. The joint proposal for the two installments will be presented together in June.” Regarding whether the postponement was their suggestion or the IMF’s, he clarified, “We suggested it, and they agreed.”

The loan program with the IMF began on January 30, 2023, and Bangladesh has received three installments so far. The first installment, worth USD 476.3 million (USD 47 crore 63 lakh), was disbursed on February 2, 2023. The second installment of USD 681 million (USD 68 crore 10 lakh) was received in December, and the third installment of USD 1.15 billion (USD 115 crore) came in June. To date, Bangladesh has received approximately USD 2.31 billion (USD 231 crore) in total from the IMF.