The International Monetary Fund (IMF) is poised to release $1.3 billion to Bangladesh in June, following the completion of the fourth review of its $4.7 billion loan program. The funds, encompassing the fourth and fifth tranches, were previously delayed due to the IMF's emphasis on greater exchange rate flexibility, notably the implementation of a crawling peg mechanism.
The Bangladesh Finance Ministry stated that an agreement was reached on revenue management, currency exchange rates, and other reform frameworks after discussions in Dhaka and Washington D.C.. As a key condition for the loan, Bangladesh has dissolved the National Board of Revenue (NBR), replacing it with two divisions under the finance ministry to enhance tax policy and administration.
In addition to the IMF funds, Bangladesh anticipates $2 billion in budget support from development partners, including the World Bank and the Asian Development Bank. Bangladesh sought the IMF bailout in 2023 due to pressure on its foreign reserves from surging commodity prices. The nation has already received $2.3 billion from the first three tranches of the loan.