Bangladesh received $750 million in foreign loans during the first two months (July-August) of the current fiscal year (FY2025-26), while simultaneously repaying approximately $670 million in interest and principal on previous loans, according to a recent update from the Economic Relations Division (ERD) released on Sunday.
The ERD report indicates that total foreign assistance received in July-August amounted to $750.6 million, all of which was provided as loans. This figure represents a significant jump from the approximately $460 million received during the same period in the last fiscal year.
Repayment Burden Increases
Conversely, loan repayments have seen a marked increase. In the two-month period, the Government of Bangladesh had to repay $667.1 million, which included $488.7 million in principal (capital) and over $178.3 million in interest. This is notably higher than the approximately $590 million repaid in the same period of the last fiscal year.
When considered in local currency, the repayment amount for this period stood at Tk 8,131 crore (BDT), an increase of over Tk 1,000 crore compared to the Tk 6,965 crore paid during the corresponding time last year.
New Commitments Also Grow
The report also highlighted an increase in new loan commitments, which reached $240 million in July-August, up from the $200 million committed during the same period last year.
Expert Concerns Over Repayment Pressure
Analysts are voicing concerns, noting that while foreign loan inflows are rising, the pressure of debt repayment is also escalating significantly. They warn that without a strong emphasis on proactive planning and responsible debt management, the country’s foreign loan situation could face greater challenges in the future.
