Finance Ministry on Tuesday said it was mutually decided that the two disbursements of IMF scheduled in FY2024-25 would be combined and will be made in June.
“Therefore, the IMF agreed to combine the fourth and the fifth disbursements together,” it said in a press release.
It also mentioned that The disbursement will be made in June after satisfactory completion of the review scheduled in April and approval by the IMF Board in June 2025.
The Finance Ministry issued the press release as a news was published today in the print media on the deferred release of the fourth tranche of the USD 4.7 billion loan from the IMF.
In this regard, the Ministry of Finance said that IMF approved a loan to the tune of USD 4.7 billion in 2023, against which Bangladesh had already received three installments amounting to USD 2.3 billion.
The installments are disbursed upon fulfilment of conditions that have been mutually agreed by the Government of Bangladesh and the IMF to strengthen the foundation of the economy.
“Budget support programs are associated with the implementation of conditions, some of which require time.”
IMF delays decision on Bangladesh's $4.7 billion loan tranche until March
In January 2023 during the Awami League regime, the International Monetary Fund (IMF) approved a $4.7 billion loan package for Bangladesh to address economic challenges exacerbated by global events, including the COVID-19 pandemic and the Russia-Ukraine conflict.
This financial assistance aimed to stabilise Bangladesh’s economy, which faced a widening current account deficit, currency depreciation, and declining foreign exchange reserves.
The loan was structured to be disbursed in multiple tranches over several years, contingent upon Bangladesh meeting specific economic reform criteria set by the IMF.
The initial disbursement of approximately $476 million occurred immediately after approval, providing essential support to the nation’s foreign exchange reserves.
Subsequent tranches were released as Bangladesh demonstrated progress in implementing the agreed-upon reforms.
In December 2023, the IMF completed its first review of the program, resulting in an additional disbursement of about $468.3 million.
This review emphasised the need for Bangladesh to tighten its monetary policy and enhance exchange rate flexibility to manage inflationary pressures effectively.
By May 2024, the IMF had agreed to provide Bangladesh with $1.15 billion as the third installment of the loan program.
This decision came after a staff-level agreement on the policies required to complete the second review of the government’s program, highlighting Bangladesh’s commitment to addressing macroeconomic imbalances through critical reforms.
VAT hike on products aimed at revenue growth, not IMF conditions: Adviser
However, political upheaval in August 2024, marked by student-led protests leading to the resignation of Prime Minister Sheikh Hasina, introduced uncertainties regarding the continuation of the IMF program.
Despite the turmoil, the IMF reaffirmed its commitment to supporting Bangladesh, emphasizing its dedication to the nation’s economic stability and inclusive growth.
In response to the evolving economic landscape, the interim government, led by Nobel Laureate Muhammad Yunus, sought additional financial assistance.
In September 2024, Bangladesh requested an augmentation of IMF financial support by approximately $750 million to address emerging external financing needs and maintain macroeconomic stability.
As of February 2025, the IMF continues to collaborate closely with Bangladeshi authorities to ensure the successful implementation of economic reforms.
The focus remains on containing inflation, rebuilding external resilience, and advancing structural reforms to promote sustainable and inclusive growth in Bangladesh.