IMF Team to Discuss $4.7 Billion Loan Tranches Starting Sunday

A delegation from the International Monetary Fund (IMF) is set to begin discussions on Sunday to review Bangladesh's updated financial data ahead of the release of the next tranches of the $4.7 billion loan.

According to the Finance Division of the Ministry of Finance, the IMF team will be in Dhaka to assess the conditions for releasing the fourth and fifth tranches of the loan package. The team’s visit is expected to last for two weeks, with meetings scheduled across various government departments.

The IMF delegation is due to arrive in Dhaka on Saturday evening. Over the course of their visit, they will engage with officials from the Finance Division, National Board of Revenue (NBR), Power Division, Power Development Board, Bangladesh Energy Regulatory Commission (BERC), and the Energy and Mineral Resources Division.

A key event during the visit will be a press briefing by the IMF team, scheduled for April 17. On both the first and last days of their visit—April 6 and April 17—the delegation will meet with Finance Advisor Dr. Salehuddin Ahmed.

Bangladesh has already received three tranches of the $4.7 billion loan since the program began on January 30, 2023. The country received $476.3 million in the first tranche on February 2, 2023, followed by $681 million in the second tranche in December 2023, and $1.15 billion in the third tranche in June 2024. In total, Bangladesh has received approximately $2.31 billion, leaving $2.39 billion from the fourth and fifth tranches still pending.

During a pre-budget discussion with the Economic Reporters' Forum (ERF), Finance Advisor Dr. Salehuddin Ahmed stressed the importance of the IMF loan for supporting the upcoming national budget. He confirmed that the government and the IMF have agreed to release both the fourth and fifth installments for the fiscal year 2024-25 together.

However, sources indicate that there are three key obstacles preventing the simultaneous release of the remaining tranches: aligning the currency exchange rate with market-based principles, raising additional revenue equivalent to 0.5% of GDP, and separating revenue administration from the NBR's revenue policy.