An 11-member delegation from the International Monetary Fund (IMF), led by Rahul Anand, head of the Asia and Pacific Division, is set to arrive in Dhaka on Saturday to assess Bangladesh’s progress in meeting the conditions for the next tranches of its $4.7 billion loan.
During their two-week visit, the delegation will discuss with various government agencies regarding the disbursement of the fourth and fifth tranches of the loan, according to the Ministry of Finance.
Meetings will be held with key financial and regulatory institutions, including the Finance Division, Financial Institutions Division, Bangladesh Bank, National Board of Revenue, Economic Relations Division, Power Division, Power Development Board, Bangladesh Energy Regulatory Commission, Energy and Mineral Resources Division, Bangladesh Bureau of Statistics, the Ministries of Commerce and the Ministry of Environment.
The mission will conclude on 17 April with a press briefing to share its assessment and recommendations.
The visit is considered crucial as Bangladesh must demonstrate progress in economic reforms to secure the upcoming loan tranches. The IMF will evaluate whether the government’s policy measures align with the agreed conditions for fiscal discipline, revenue generation and economic stability.
Bangladesh signed the loan agreement with the IMF on 30 January 2023 and received the first tranche of $476.3 million in February 2023.
The second tranche of $681 million was disbursed in December 2023, followed by the third tranche of $1.15 billion in June 2024.
So far, the country has received a total of $2.31 billion, while $2.39 billion remains outstanding.
The disbursement of the fourth and fifth tranches has encountered challenges, as Bangladesh must fulfil specific IMF conditions.
The government aims to secure both installments by June 2024, but meeting the IMF’s requirements remains a significant hurdle.
Finance Adviser Dr Salehuddin Ahmed said, “The loan is critical for budgetary support. The government and IMF have reportedly agreed to disburse the two upcoming tranches for the current fiscal year 2024-25 together, provided that Bangladesh meets the necessary conditions.”
The IMF team will assess the government’s progress in economic reforms, particularly in expenditure management and revenue collection. If the conditions are met, the loan disbursement will proceed smoothly, enhancing Bangladesh’s financial credibility in the global market.
However, failure to meet the requirements could delay the funds, complicating budget implementation and fiscal management.
Source: Daily Sun
Bd-pratidin English/ Afia
