Bangladesh receives $476.2m in first tranche of IMF loan

| Updated: February 03, 2023 08:49:42

Bangladesh receives $476.2m in first tranche of IMF loan

The International Monetary Fund has released the first tranche of $476.2 million of the $4.7 billion loans it approved for Bangladesh.

Bangladesh Bank spokesperson Mezbaul Haque said the funds were transferred to the central bank’s account in the Federal Reserve Bank of the US on Thursday.

The IMF would release the second instalment as per the schedule, he said.

The IMF Executive Board approved the loans for Bangladesh at the request of the government on Monday, helping the country build a buffer against depleting foreign currency reserves, reports bdnews24.com.

Bangladesh secured about $3.3 billion under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements.

This approval enables the immediate disbursement of about $476 million, the IMF said in an emailed statement on Tuesday.

The IMF Executive Board also approved about $1.4 billion under the newly created Resilience and Sustainability Facility (RSF). Bangladesh is the first Asian country to access the RSF.

The loans with a 2.2 per cent interest will come in seven instalments, with the last one in 2026.

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