Online Report : The International Monetary Fund (IMF) has approved the disbursement of $1.3 billion to Bangladesh as part of its ongoing $4.7 billion loan program.

This amount covers both the third and fourth tranches of the loan and is expected to be deposited into Bangladesh’s account on June 26.

Bangladesh Bank Governor Ahsan H. Mansur confirmed the development on Monday night, stating, "We are receiving $1.3 billion. It has been approved by the IMF board today."

The approval came during a meeting of the IMF Executive Board held at its Washington D.C. headquarters late Monday, Bangladesh time. The board reviewed and endorsed reports from the third and fourth reviews of Bangladesh’s loan program.

The IMF had initially approved the $4.7 billion loan package on January 31, 2023, spanning three and a half years. The program was designed to support Bangladesh in maintaining macroeconomic stability, protecting vulnerable groups, and promoting inclusive and environmentally sustainable growth.

Bangladesh originally sought the loan to address a widening current account deficit, a depreciating currency, and falling foreign exchange reserves. The disbursement of the latest tranches is expected to provide a significant boost to the country`s reserves and help stabilize its economy amid ongoing external sector pressures.