The International Monetary Fund's (IMF) fourth tranche loan of $1.1 billion will be available in February-March, Finance Adviser Dr Salahuddin Ahmed said on Tuesday.
He said this in response to a question from reporters after a meeting with the visiting IMF delegation.
The 13-member IMF delegation will meet with the top level of the government, officials from various departments and heads of various government agencies.
The Finance Adviser said, "A delegation from the International Monetary Fund (IMF) came. Discussions were held with them on the fourth tranche of $1.1 billion of the $4.7 billion loan package. We hope to get it by February-March."
He said, "Our economic stability is returning. It has not come completely, but now is the time for investment. You will see that the foreign exchange rate is not fluctuating like before. Several banks in the banking sector are looking for liquidity support. However, big banks like Islami Bank are coming back to normalcy to some extent. Islami Bank is the largest bank among the private banks. Other banks will also come back gradually."
He said, "Remittances are very good. Exports are also good, imports are a little less. But they have increased a little from before. Capital equipment is coming a little less, that is due to some restrictions. We are thinking about that, what can be done. They will stay here for a few days."
The Adviser said, "Whether we can meet the targets they give is another matter. But I hope they will help develop Bangladesh's economy."
When asked about additional funds, the adviser said, "We will discuss for additional funds again. The current $4.7 billion is from the first package. But to carry out reforms, we will need funds. We have to reform many things, such as the banking sector, the revenue sector. We will need funds to do these."
He said, "After a few days, the ADB will come, the OPEC fund money will come. In total, we will receive $6 billion by next June."
When asked whether there was any discussion with them about the white paper, he said, "There was no discussion with the IMF on this matter."
It is worth noting that Bangladesh signed a $4.7 billion loan agreement with the IMF on January 30 last year, while its foreign exchange reserves were decreasing. Three days later, IMF released the first installment of $476.27 million. Then, on December 16, the second installment of $682 million was released.
The loan is scheduled to be fully disbursed in seven installments until 2026. The second installment was supposed to have the same amount in subsequent installments. But as reserves have dwindled further, Bangladesh is seeking more money in the third and fourth installments.
The IMF has already lent $1.15 billion instead of $680 million in the third installment, after implementing several tough conditions and promising bigger reform programs in the future. It has now agreed to give $1.1 billion in the fourth installment. However, the total amount and term of the loan will remain the same.
