IMF 4th tranche disbursement delayed to June, not March

The disbursement of the fourth tranche of the International Monetary Fund (IMF) loan programme, amounting to $645 million, is being delayed. 

Instead of the initially planned release in March, a proposal to release the fourth tranche in June will likely be presented at the IMF's executive board meeting. 

Simultaneously, the proposal for the fifth tranche will also be considered. This update was shared by Finance Adviser Dr Salehuddin Ahmed on Monday (February 17).

Salehuddin provided this information to reporters after attending a session related to the Finance Ministry during the second day of the Deputy Commissioner Conference held at the Osmani Memorial Auditorium in Dhaka.

Addressing concerns about the delay, the adviser remarked, "We have some work ahead, and we are not in a rush. Let me clarify one thing—many believe we will beg for this money. On the contrary, it comes with conditions that we must insist on fulfilling ourselves. There are certain stipulations we will not comply with simply because they are imposed externally."

He emphasised the strength of Bangladesh's macroeconomic indicators, saying, "Our current account, financial account, and expatriate remittances are performing well. We are not desperate for this loan." Initially, the proposal for the fourth tranche was scheduled for presentation at the IMF executive board meeting on February 5, but it was first postponed to March 12 before being further rescheduled to June. 

If approved, both the fourth and fifth tranches could potentially be released together within days of approval.

In separate developments, Dr Salehuddin Ahmed highlighted discussions with the International Fund for Agricultural Development (IFAD). 

He praised IFAD’s contributions to Bangladesh's agricultural sector, noting their pivotal role in advancing fisheries, livestock, and farming initiatives. "Without their support," he said, "feeding our population of 170 million would have been unimaginable."

The finance adviser expressed hopes for increased financing from IFAD to bolster these critical sectors. "We need more investment in agriculture to sustain growth and ensure food security," he added.