The International Monetary Fund (IMF) has announced that the sixth installment of its $5.5 billion loan program for Bangladesh will be disbursed after the upcoming national election.
The donor agency said the release will take place following discussions with the newly elected government to ensure the continuity of the reform program.
Bangladesh is set to receive around $800 million as the sixth tranche. Although the original plan scheduled the disbursement for December, the new decision has postponed it to the post-election period.
During the annual IMF and World Bank meetings in Washington, Bangladesh’s Finance Adviser Dr Salehuddin Ahmed and Bangladesh Bank Governor Dr Ahsan H Mansur were informed about the decision.
Governor Mansur said: “The IMF wants to sit with the elected government to ensure the continuity of the reform program. The loan program will continue, but its progress will depend on discussions with the next government.”
He added: “Currently, we face no financial pressure, so the postponement of the tranche is not a major issue. However, policy support and guidance remain crucial. We want continuity in economic policy.”
Meanwhile, an IMF delegation is scheduled to visit Dhaka on October 29. During their two-week visit, they will review the progress of the reform program and hold meetings with the Ministry of Finance, Ministry of Power and Energy, Bangladesh Bank, National Board of Revenue, and other relevant agencies.
Sources in the Ministry of Finance said that most conditions for the sixth tranche have already been met, although the revenue collection target is slightly behind schedule.
In January 2023, the IMF approved a $4.7 billion loan for Bangladesh. In June, during the approval of the fourth and fifth tranches, an additional $800 million was added, bringing the total program amount to $5.5 billion. So far, Bangladesh has received $3.6 billion under this program.
