Bangladesh Bank spokesperson Arif Hossain Khan has stated that there is no full guarantee yet that the country will receive the fourth and fifth installments of the IMF loan, as several of the required conditions have not been fully met. Speaking to reporters on Sunday, he clarified that while progress has been made on many conditions, Bangladesh has not achieved 100% of the set targets, and some issues are beyond the central bank’s control, involving broader state matters.

According to central bank sources, key concerns include sluggish growth in revenue collection, lack of a fully market-based exchange rate, continued subsidies, and underperformance in the banking sector. During the recent IMF visit, particular focus was placed on enhancing tax revenues and liberalizing the foreign exchange rate mechanism.

The spokesperson noted that Bangladesh Bank is not ready to let the exchange rate float freely just yet but may consider it once the foreign currency reserve situation improves. He expressed confidence that the IMF’s reserve target for June would be met.

IMF also emphasized the need for legal reforms to strengthen the banking sector, enforce proper asset classification, and improve the autonomy and governance of the central bank. The organization further recommended firm action against money laundering and terrorism financing and urged for a reduction in non-performing loans, better supervision, and more transparency in policy-making.

At a prior briefing held at Bangladesh Bank, Chris Papageorgiou, head of IMF’s Development Macroeconomics division, said the IMF intends to support Bangladesh and that further discussions will take place at the upcoming Spring Meetings of the IMF and World Bank in Washington, D.C., from April 21 to 26. He indicated that while the next disbursement isn’t confirmed, it’s not entirely blocked either.

Papageorgiou noted the economic challenges facing Bangladesh amid global uncertainty. The country’s GDP growth declined to 3.3% in the first half of the current fiscal year, compared to 5.1% in the same period last year, due to factors such as public unrest, tight policies, and investment uncertainty. Although inflation has decreased from a decade-high of 11.7% to 9.4%, it remains significantly above the central bank’s target of 5–6%.

Since the IMF loan program began on January 30, 2023, Bangladesh has received three installments totaling $2.31 billion out of an approved $4.7 billion. Economists view this loan as vital for maintaining economic stability and warn that failure to secure future installments could undermine confidence among other global lenders and investors.