IMF approves 3rd tranche of $1.15b loan for Bangladesh
The International Monetary Fund (IMF) has approved the disbursement of the third tranche of its 1.15 billion US dollar loan to Bangladesh, a move aimed at bolstering the country's foreign exchange reserves.
Mezbaul Haque, a spokesperson for Bangladesh Bank, announced, 'The IMF board has given the green light for the third instalment of our loan. We anticipate the $1.15 billion will be disbursed within the next two days.'
The IMF's decision follows a review of Bangladesh's progress in meeting the objectives outlined in December of the previous year. This approval is part of the broader $4.7 billion loan agreement established to support the country's economic stability.
Despite successfully meeting most of the stipulated conditions, Bangladesh fell short of maintaining the required foreign currency reserves at the specified level set by the IMF.
According to the loan agreement, the target for net international reserves (NIR) for December was $17.78 billion. However, the IMF's recent review revealed that the NIR stood at $16.73 billion at that time.
The IMF initially approved the $4.7 billion loan package in January of the previous year. To date, Bangladesh has received over $1 billion through two prior instalments.
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