DHAKA, Bangladesh

The International Monetary Fund (IMF) said on Wednesday that it has agreed to provide Bangladesh with $1.15 billion as the third installment of its multi-billion-dollar loan program.

Earlier in Jan. 2023, the IMF approved a $4.7 billion loan to the country, which was facing a foreign reserves crisis due to high inflation.

IMF staff and Bangladesh authorities have reached a staff-level agreement on the policies required to complete the second review of the government program supported by the IMF, according to a statement.

“The review is pending IMF Executive Board approval. Upon the Board’s approval, Bangladesh will have access to SDR871 million (about US$1,152 million) in financing,” it said.

The IMF said Bangladesh authorities adopted some critical reforms to address macroeconomic imbalances, , such as realigning the exchange rate, implementing a crawling peg regime, and fully liberalizing retail interest rates.

“The authorities’ reform program supported by the IMF will continue to help Bangladesh navigate a difficult external environment and preserve macroeconomic stability, while accelerating economic reforms and delivering on their climate agenda to achieve sustainable, inclusive, green growth,” it added.