Staff Reporter :
The International Monetary Fund (IMF) has greenlit a significant disbursement of $1.15 billion to Bangladesh as part of its ongoing multi-billion-dollar loan program. This allocation marks the third installment under the arrangement.
Following a recent 15-day visit to Bangladesh, an IMF mission team led by Chris Papageorgiou finalized discussions on economic and financial policies essential for the completion of the program’s second review. The IMF’s staff-level agreement with the Bangladeshi government is now awaiting approval by the IMF’s Executive Board, expected in the coming weeks.
Upon board approval, Bangladesh is set to receive approximately $932 million under the Extended Credit Facility (ECF)/Extended Fund Facility (EFF) and an additional $220 million under the Resilience and Sustainability Facility (RSF), totaling $1.15 billion.
Mr. Papageorgiou emphasized the progress made by Bangladeshi authorities in implementing structural reforms, notably the adoption of a formula-based fuel price adjustment mechanism for petroleum products.
Despite these advancements, global financial tightening and persistently high international commodity and food prices, alongside domestic vulnerabilities, have contributed to challenges including high inflation and declining foreign exchange reserves in Bangladesh.
Over the past year, the IMF has committed around $3.3 billion under the ECF/EFF and $1.4 billion under the RSF to Bangladesh.
This support is disbursed in multiple installments, with the first totaling $476 million received on February 2, and the second amounting to $681 million received in December of the preceding year.
The IMF’s total loan to Bangladesh will be delivered in seven installments over a 42-month period until 2026, aiming to bolster the nation’s economic resilience and sustainability.