IMF to Release $1.3 Billion to Bangladesh After Fourth Loan Review

The International Monetary Fund (IMF) will disburse $1.3 billion to Bangladesh in June 2025 after the completion of the fourth review of its $4.7 billion loan program.

Key Highlights:

• The fourth and fifth tranches will be released together, delayed earlier due to IMF’s insistence on exchange rate reforms.
• Bangladesh has agreed to adopt a crawling peg exchange rate system to increase currency flexibility.

Major Reforms and IMF Conditions

• Bangladesh government dissolved the National Board of Revenue (NBR).
• Two new revenue divisions have been created under the Ministry of Finance, meeting a key IMF condition.
• Agreements were finalized on:
  • Currency exchange rate regime
  • Revenue management frameworks
  • Overall reform alignment

Significance

• The move strengthens foreign exchange reserves, stabilizes the taka, and reinforces Bangladesh’s commitment to fiscal consolidation and transparency.
• It supports Bangladesh’s goal to sustain macroeconomic stability amid global economic challenges.

Recent Related News:

• In May 2025, the IMF approved a $1 billion loan to Pakistan under the Extended Fund Facility (EFF).

About the International Monetary Fund (IMF)

• Established: 22 July 1944
• Headquarters: Washington, D.C., USA
• Managing Director: Kristalina Georgieva
• Membership: 191 countries (190 UN member states + Kosovo)