The International Monetary Fund (IMF) is to issue $ 1.3 billion to Bangladesh in June after the fourth review of its $ 4.7 billion and a key breakthrough in interviews on the exchange rate reforms, Dhaka said.
Funds that covered both the fourth and fifth tranches were detained when the IMF pushed the more flexibility of the exchange rate, especially for the acceptance of the passing Peg mechanism.
The fourth review in Dhaka in April followed further discussions during the Spring Bank-Fonde meeting in Washington DC that month, focused on critical reforms in income management, fiscal policy and foreign exchange regime.
“After careful review of all questions … both parties agreed to manage income, exchange exchange rate and other reform frames,” the Ministry of Finance said on Wednesday in its statement.
After completing an employee’s agreement on the fourth review, the IMF is expected to issue $ 1.3 billion to the fourth and fifth installments by June.
The government also abolished the National Income Council (NBR) and replaced it with two divisions under the Ministry of Finance to meet the key condition of the IMF.
One division will deal with tax policy with the other administration of tax collection and administration aimed at increasing the efficiency, transparency and responsibility, the government said.
In addition to the IMF funds, the government expects budgetary support of $ 2 billion from developing partners, the Ministry of Finance added.
These bodies include the World Bank, Asian Development Bank (ADB), Asian Investment Bank of Infrastructure (AIIB), Japan and Fund for International OPEC Development, added.
In 2023, Bangladesh turned $ 4.7 billion for the IMF, as his foreign reserves were under the pressure of the global increase in commodity prices caused by Russian invasions of Ukraine and stretched his ability to pay for key fuel and gas imports.
The South Asian nation previously received $ 2.3 billion in the first three transes.
The temporary government led by the Nobel Peace laureate Muhammad Yunus joined the office in August after the former Prime Minister Sheikh Hasina released after fatal protests.
(Tagstotranslate) International Monetary Fund (T) $ 1.3 billion USD to Bangladesh
