Dhaka repaid more in foreign debt than it received in loans in July-August

Debt. IMF

Dhaka, Oct 1 - Bangladesh paid out significantly more than it received in foreign loans during the first two months of the current fiscal year (FY) 2024-25, according to a report from the Economic Relations Division (ERD) released on Monday.

The report highlights that between July and August, Bangladesh received foreign loans amounting to $458.2 million. However, during the same period, the country was required to pay $589.2 million in debt installments, leaving a deficit of $131 million.

Breaking down the repayments, the report indicates that $415.6 million was paid toward the principal amount, while $173.6 million went toward interest payments. This marks an increase of $19 million in interest payments compared to the same period last year.

Compounding the challenge, the country’s foreign loan commitments during these months saw a sharp decline, with only $2 million in new commitments recorded. - UNB