A 13-member delegation from the International Monetary Fund (IMF) has arrived in Dhaka to begin discussions on the sixth tranche of Bangladesh’s ongoing $4.7 billion loan programme.
The team, led by Chris Papageorgiou, IMF’s Mission Chief for Bangladesh, will stay in the country until November 13 as part of the programme’s periodic review.
The delegation formally began its activities on Wednesday with a meeting with the Finance Secretary at the Secretariat, followed by discussions with the Macroeconomic Wing of the Finance Division.
During their stay, the IMF team will hold a series of meetings with officials from the Bangladesh Bank, National Board of Revenue (NBR), and ministries of Finance, Labour and Employment, and Energy, among others.
According to finance division sources, Bangladesh has met most of the IMF’s reform conditions, except those related to revenue collection. Initially, the sixth tranche was expected to be released in December, but at the World Bank–IMF Annual Meetings in Washington earlier this month, the IMF indicated that no disbursement would take place this year.
The IMF has said the next tranche will be released after the national election in February, once the new government reaffirms its commitment to the reform agenda.
Commenting on the situation, Finance Adviser Dr. Salehuddin Ahmed said, “The next tranche may come in March or April. This is not a negative development; in fact, it could be beneficial for the country.”
Sources at the Bangladesh Bank said the IMF has raised concerns over the foreign exchange rate, arguing that the taka is undervalued compared to its real market level. However, the central bank maintains that the US dollar is already overvalued in the local market.
Officials also hinted that the IMF may release the sixth and seventh tranches together, totaling about $800 million, similar to an earlier instance when the third and fourth tranches were disbursed jointly after delays in meeting preconditions.
The IMF approved the $4.7 billion Extended Credit Facility (ECF) for Bangladesh in January 2023. With extensions and additional support approved in June this year, the total loan amount now stands at $5.5 billion, of which Bangladesh has so far received $3.6 billion.
The ongoing review process is scheduled to conclude on November 13, after which the IMF will assess the country’s progress before making its final decision on the next disbursement.