If the board approves, Bangladesh will get the third installment of the IMF loan – 2024-05-10 18:38:44

by times news cr

2024-05-10 18:38:44

Bangladesh will receive the third tranche of the loan if the Executive Board of the International Monetary Fund (IMF) approves, said Chris Papageorgeou, head of the delegation of the donor organization visiting Dhaka.

In a press conference at the secretariat on Wednesday (May 8), he said that the International Monetary Fund has reached an agreement with Bangladesh regarding the payment of the third installment of the loan. Awaiting permission from the executive board of the donor organization in a few weeks. After this, after the second review, the third tranche of the loan will be disbursed of USD 932 million.

The head of the IMF’s Development Microeconomics Division said that Bangladesh has made important structural reforms under IMF-supported programs. In particular, they implemented a formula-based fuel price adjustment policy for petroleum products.

Despite various problems including inflation, the IMF has welcomed the steps taken by Bangladesh Bank to realign the exchange rate.

The IMF approved a $4.7 billion loan in January last year as part of Bangladesh’s response to the economic crisis. Immediately after the approval of the loan, the company released the first installment of 476.3 million dollars. The entire amount is to be paid in seven installments over three and a half years till 2026. The IMF’s Executive Board approved the second tranche of the loan in December last year.

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