The release of the fourth installment of Bangladesh’s $4.7-billion loan from the International Monetary Fund (IMF) may be delayed until June as the government struggles to meet key conditions.

The fourth tranche of $645 million, initially expected by February 10, has been pushed back due to delays in additional revenue mobilization and exchange-rate flexibility.

IMF officials are now discussing the possibility of combining the fourth and fifth tranches in June, pending the conclusion of the credit programme’s third and fourth reviews. Under the fifth installment, Bangladesh is scheduled to receive approximately $530 million.

One key issue is the central bank’s reluctance to allow further exchange-rate flexibility, which the IMF insists is necessary to curb unofficial foreign remittance channels. Despite official claims that banks can freely negotiate exchange rates, experts suggest an “invisible ceiling” of Tk 122 per US dollar remains in place.

Another delayed reform is the separation of tax policy from tax administration, with disagreements between the finance division and the National Board of Revenue (NBR) stalling progress.

IMF Mission Chief Chris Papageorgiou stated last month that the board would assess the review “based on the authorities’ implementation of prior actions.” However, an IMF official in Dhaka declined to comment on the current status.