(MENAFN) The International Monetary Fund (IMF) has approved a fresh $1.3 billion payout to Bangladesh following the successful completion of the combined third and fourth assessments under its $4.7 billion loan agreement with the South Asian country.

By June 2024, the IMF had already released $2.3 billion in three installments as part of the financial assistance package launched in 2023.

In an official announcement, the Washington-based institution confirmed that its Executive Board finalized the joint third and fourth reviews of Bangladesh's Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements on Monday, approving an extension along with increased and restructured access to funds.

This approval grants Bangladesh immediate access to nearly $884 million, according to the statement.

Furthermore, the IMF completed the combined third and fourth reviews of Bangladesh’s Resilience and Sustainability Facility (RSF) arrangement, unlocking an additional $453 million aimed at strengthening the country’s climate resilience efforts.

The statement highlighted that despite facing challenging political and economic conditions alongside mounting downside risks, Bangladesh’s program performance remains broadly satisfactory.

The IMF stressed that pushing forward with the reform agenda is vital for reinstating economic stability, safeguarding vulnerable populations, and promoting inclusive, environmentally sustainable growth.

Adding to this, Bangladesh’s finance adviser Salehuddin Ahmed recently anticipated securing an extra $3.5 billion in budget support—including the IMF’s $1.3 billion—from various multilateral and bilateral lenders during the fiscal year 2024-25, which concludes this month.

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