The International Monetary Fund and Bangladesh reached a staff-level agreement on Thursday on the first review of a $4.7 billion bailout, the IMF said, in a boost for the cash-strapped economy which is struggling with low foreign exchange reserves.

Completion of the first review, subject to IMF board approval in the coming weeks, will make available about $681 million to the South Asian country, the IMF said in a statement.

The IMF approved $4.7 billion in loans to Bangladesh in January, making it the first to secure such funds out of three South Asian countries that applied last year amid economic troubles.

"The authorities have made substantial progress on structural reforms under the IMF-supported program, but challenges remain," the Fund said in its statement.

"Continued global financial tightening, coupled with existing vulnerabilities, is making macroeconomic management challenging, putting pressures on the Taka and FX reserves."

(Reporting by Shivam Patel in New Delhi; Editing by Andrew Cawthorne and Gareth Jones)