Bangladesh expects $3.3b in support from IMF, development partners by June

BSS
Published On: 14 May 2025, 21:10 Updated On:15 May 2025, 08:48

DHAKA, May 14, 2025 (BSS) - The Ministry of Finance today hoped that the country would receive around $3.3 billion in total loan support from the international development partners by this June including fourth and fifth tranches of $1.3 billion from the International Monetary Fund (IMF).

In a statement issued today, the ministry said that these funds, allocated as budget support, would help strengthen Bangladesh’s foreign currency reserves and stabilise the exchange rate.

Among the IMF’s key policy recommendations related to the loan are reforms in revenue management and in exchange rate regime.

The statement said the IMF's fourth review was successfully completed and following a decision after the third review, it was agreed that the fourth and fifth tranches would be released together, pending additional review of key reforms in revenue management and exchange rate policy.

“In line with that decision, detailed discussions were held during the fourth review in Dhaka in April, followed by continued engagement at the World Bank–IMF Spring Meetings in Washington, DC, later that month.”

The ministry added that both parties have reached consensus on revenue reforms, foreign exchange measures, and other structural policy changes after carefully evaluating macroeconomic stability.

With a staff-level agreement now in place, Bangladesh expects the IMF to disburse $1.3 billion covering both the fourth and fifth tranches by June.

In addition to the IMF support, Bangladesh also expects to receive around $2 billion in budget assistance from other development partners, including the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Japan, and the OPEC Fund for International Development.

While these loans do come with reform conditions, the finance ministry said that all decisions are being taken considering Bangladesh’s socio-economic context.

“The inflow of these funds will further strengthen foreign exchange reserves and help maintain stability in the exchange rate,” the ministry said.

The statement also said that the reform programmes being undertaken in exchange for budget support are designed solely by the Government of Bangladesh based on national interests with technical assistance from the development partners.

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