Dhaka, Jan 22: The release of the fourth tranche of Bangladesh’s $4.7 billion budget support loan from the International Monetary Fund (IMF) has been deferred until March, primarily due to scheduling adjustments caused by natural disasters.
A senior official at Bangladesh Bank (BB) told to UNB that the matter was initially set for discussion in the IMF executive board meeting on February 5. But the meeting has been postponed, with the new date set for March 12.
The IMF’s month-long closure of activities, prompted by natural disasters, is cited as the main reason behind the change in the schedule.
The global lender has emphasised several conditions tied to the loan’s release. One critical demand is the liberalisation of the US dollar exchange rate, which the central bank is reportedly aligning with market trends.
Another major point of contention relates to revenue collection targets set for the National Board of Revenue (NBR).
While IMF officials have raised concerns regarding these targets, an NBR source has stated that measures to enhance revenue collection are already underway and there are no significant hurdles from their side.
The fourth tranche, amounting to $645 million, follows three previous installments under the loan program.
Meanwhile, Bangladesh has requested an increase of $750 million in the overall $4.7 billion package.
The IMF has agreed to this request but has set strict conditions, including increased revenue collection and structural changes like separating tax collection from policy-making.