Foreign debt disbursement has exceeded US$4 billion. In the first eight months of the fiscal 2024-25 (July-February), the country received a total of $4.13 billion in foreign debt when it had to repay $2.64 billion.
This picture has emerged in the updated report on foreign debt for July-February period as prepared by the Economic Relations Division (ERD) and published by the government on Monday. However, in the first few months of the ongoing fiscal year, the repayment was more than the relief.
In the last eight months, the highest foreign debt came from the Asian Development Bank (ADB). During this period, this lending agency provided about $1.13 billion. In addition, the World Bank provided $960 million and Japan provided $730 million as loan.
According to the ERD report, the foreign debt situation has improved due to relatively high foreign debt relief in December, January and February.
On the other hand, the government had to repay $2.64 billion on foreign debt in the eight months in question. Of this, $1.69 billion has been paid in principal. And $950 million has been paid in interest.
In the first eight months of fiscal 2023-24, $2.03 billion had to be repaid. The Bangladesh government had to pay $610 million more in a year.
Meanwhile, there are not many commitments from foreign donors in loan assistance as project loan under the Annual Development Programme (ADP).
Development partners have promised $2.35 billion during last July-February period. Last time, promises of $7.2 billion were received during the same period. But this year the promises have come down to one-third.
Countries like China, India, and Russia have not made any promise in the current fiscal year.
Foreign debt repayments have increased significantly over the past few years. According to ERD sources, Bangladesh had to pay $3.36 billion in foreign debt repayments in the last fiscal year.
