IMF gives green signal to third tranche of loan for Bangladesh
The International Monetary Fund has given Bangladesh the green signal for 681 million US dollar as the third instalment of the lender's $4.7 billion loan package.
Following discussions with a visiting delegation from the IMF, several high-ranking officials from Bangladesh's finance ministry confirmed the imminent release of the instalment, scheduled for June.
The IMF is expected to revise down the required level of net foreign exchange reserves for June from $20.10 billion to a range between $17 billion and $18 billion.
Previously, the IMF had stipulated that Bangladesh maintain reserves of $19.26 billion by the end of March and increase this figure to $20.10 billion by the conclusion of June in order to qualify for the third instalment.
Despite the current reserves hovering around $15 billion, officials from the finance division expressed confidence in receiving the third tranche, even if these reserve targets are not met precisely.
According to one official, there is a general consensus between Bangladesh and the IMF on most issues. The government is actively engaged in implementing the IMF's conditions, which include measures such as reducing subsidies, enhancing revenue generation, and bolstering reserves.
The specifics of the revised reserve requirements will be determined in an upcoming meeting with the central bank. Additionally, the IMF will outline the net reserve targets for October and December, which will dictate the conditions for the fourth tranche of the loan.
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