The finance ministry on Sunday said that it expected聽$1.1 billion in loan support from the World Bank and the Asian Development Bank would be disbursed in the current month.
The finance ministry led by adviser to the interim government Salehuddin Ahmed made the expectation in a press release against the backdrop of loan approvals by both the multilateral lenders recently.
On December 11, the Manila-based ADB approved $600 million as budget support while the Washington based WB approved $500 loan, also as the budget support, on December 20.
In its press release, the finance ministry said that the availability of funds would bolster the reform programme being implemented under the interim government that assumed power after the fall of the Awami League amid a mass uprising on August 5.
Earlier, the finance adviser told reporters that the interim government sought $6 billion from multilateral lenders for the current FY25 in connection with the reform programme for reviving the economic activities that came under serious stresses during the AL regime.
Besides, the International Monetary Fund announced to make $645 million available in February under the current $4.7 billion loan programme that began in 2023.
The IMF has already disbursed around $2.3 billion in two tranches including $1.1 billion as the second tranche in June 2024, assisting the country鈥檚 balance of payment.
The ADB, while approving $600 million, said that the loan aimed at bringing structural reforms to support domestic resources mobilisation, enhancing the efficiency of public investment projects, developing the private sector, reforming state-owned enterprises, and promoting transparency and good governance.
This particular loan programme of the ADB has been developed in close collaboration with the International Monetary Fund, World Bank, and other multilateral lenders following requests for extra funds.
The IMF has already lowered Bangladesh鈥檚 gross domestic product growth to 3.8 per cent for the current 2024-25 financial year from 4.5 per cent due to output losses caused by the public uprising, floods and tighter policies.
The IMF said that inflation would remain about 11 per cent on average in FY25 before declining to 5 per cent in FY26, supported by tighter policies and easing supply pressures.
It is, however, is expected to rebound to 6.7 per cent in FY26 as policies relax, it said.
The IMF said that Bangladesh鈥檚 low tax-to-GDP ratio needed to be improved with urgent reforms by rationalising exemptions, improving compliance and separating tax policy from the administration.
