About 109 million dollars have been added to the reserves of Bangladesh Bank in one day. Of this, 69 crores from the International Monetary Fund (IMF) and 400 crores from the Asian Development Bank (ADB) have been added to the reserves. Bangladesh Bank Spokesperson and Executive Director Majbaul Haque confirmed the matter.
Majbaul Haque said that Bangladesh received the second installment on Friday. In the meeting of the IMF executive board last Wednesday, it was decided to discount 46.83 billion dollars of the second installment of Bangladesh’s debt. Bangladesh received 47.62 million dollars of the first installment of a total of 4.7 billion dollars ($4.7 billion) in February this year. The amount is deducted within three days of approval of the service.
The spokesperson of Bangladesh Bank also said that before approving the loan of the second installment, the IMF delegation inspected the reform measures in Bangladesh according to the agreement. The IMF Board then approves installment concessions based on their assessment and observations.
Bangladesh seeks a loan of 4.7 billion dollars from the IMF amid the foreign exchange supply crisis. The much-anticipated loan proposal was approved by the Washington-based firm on January 31.
The agency’s review mission came in October to see how far the loan conditions given in the first tranche have been implemented before approving the money for the second tranche. Bangladesh informed them that some conditions were not fulfilled. He gave the reason and promised to fulfill it.
According to the agreement, Bangladesh will receive four more installments in phases by 2026. Each time, before releasing the installments, the IMF will decide on the use and implementation of the terms of the previous installments as per the terms of the loan agreement.
Earlier, the IMF expressed hope that Bangladesh’s reserves will begin to increase soon. At the same time, the company predicts that the inflation rate will also decrease.
According to the IMF, the economy of Bangladesh has repeatedly stumbled in the situation caused by the Russia-Ukraine war. However, due to the imposition of austerity on imports, the remittance and export earnings have started to increase to some extent along with the decrease in import costs. This has reduced the current account deficit.
Besides, in the board meeting of ADB on December 8, a loan of 400 million dollars was approved for a project in Bangladesh to combat the effects of climate change. The loan agreement was signed between ADB and the Bangladesh government on December 11 at the Economic Relations Department (ERD) conference room in the capital’s Sher Bangla Nagar. Edimon Ginting, Country Director on behalf of EDBI and ERD Secretary Shahriar Quader Siddiqui on behalf of the government signed the agreement.
ERD said that although the loan was taken for the implementation of the project titled Climate Resilient Inclusive Development Program (Subprogramme-1), all of this money will be added to the reserve to keep the country’s foreign exchange stable and strong.