IMF approves $1.15 billion on staff-level for Bangladesh in third loan tranche

A participant stands near a logo of IMF at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, 12 October 2018.Reuters file photo

The International Monetary Fund (IMF) has consented to provide Bangladesh with $1.15 billion as the third tranche of a $4.7 billion loan.

The IMF team reached a staff-level agreement with Bangladesh on the policies needed to complete the second review under the ECF/EFF/RSF arrangements, according to an IMF press release on Wednesday.

The staff-level agreement was reached after a thorough discussion on the necessary economic policies.

This agreement came at the conclusion of a 15-day visit to Bangladesh by an IMF mission team led by Chris Papageorgiou, which focused on evaluating the country’s economic and financial policies.

The funds allocated in this tranche include approximately $932 million under the Extended Credit Facility (ECF)/Extended Fund Facility (EFF), and about $220 million under the Resilience and Sustainability Facility (RSF).

However, the disbursement is contingent upon the forthcoming approval from the IMF’s executive board in Washington, which is anticipated in the next few weeks.

Upon receiving the board’s nod, Bangladesh will gain access to the substantial sum of $1.15 billion, bolstering its financial stability and supporting ongoing economic reforms.