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Bangladesh receives $1.15bn from IMF as part of $4.7bn loan package

June 28, 2024 11:54 AM IST

Bangladesh received $1.15 billion from the International Monetary Fund (IMF) on Thursday, marking the third tranche of a $4.7 billion loan package. Besides the IMF funds, Bangladesh also received around $900 million from other sources including the International Bank for Reconstruction and Development (IBRD). The gross forex reserve of Bangladesh will be around $26 billion, said Spokesperson of Bangladesh Bank on Thursday.

Since the middle of 2022, the Bangladesh economy has been facing a crisis. To mitigate the liquidity and forex issue, Bangladesh took preventative steps in 20222 and reached out to the International Monetary Fund (IMF) and other international lenders to avert a meltdown. The poor corporate governance, a culture of willful loan defaults, fuel and electricity price hikes, customs evasion and money laundering all play a significant role in exacerbating the economic challenges of Bangladesh.

On June 24, the IMF executive board approved the release of the third installment of the $4.7 billion loan, reports UNB.

The IMF approved the first tranche of the loan package on January 30, 2023, with Bangladesh receiving $447.8 million on February 2, 2023. The entire IMF loan will be disbursed to Bangladesh in seven installments over three and a half years, concluding in 2026.

Navalsang Parmar(Dhaka)

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