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The Bangladesh Bank (BB) is set to receive the second installment of a $4.7 billion loan from the International Monetary Fund (IMF) in December, amounting to $681 million. This was announced by Md Mezbaul Haque, BB’s Executive Director, during Thursday’s IMF-BB briefing that followed the last resort’s board meeting.
The forthcoming disbursement comes after BB fulfilled several conditions stipulated by the IMF, despite identified shortfalls in foreign exchange reserves and revenue collection. The conditions include the introduction of new rules of interest, the implementation of market-determined exchange rates, and the use of BPM-6 for reserve calculation.
The loan was approved by the IMF in January, with Bangladesh receiving the first tranche of $476.2 million in February. A staff-level agreement and mutual consensus on various issues during their last meeting have set the stage for this next tranche of the global lender of last resort’s loan.
In line with the IMF’s requirements, BB also released its financial stability report. The upcoming installment is pending a decision at an IMF board meeting scheduled for December.
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