Bangladesh balances foreign debt repayments with disbursements in Jul-Oct
Bangladesh repaid $1.585 billion in foreign loans in the July–October period, nearly matching the $1.66 billion disbursed by development partners
Bangladesh has repaid almost as much foreign debt as development partners have disbursed during the first four months of the current fiscal year (July–October 2025-26), official data show.
According to the Economic Relations Department (ERD) data released today (30 November), development partners disbursed $1.66 billion in the July–October period. During the same timeframe, Bangladesh repaid $1.585 billion in interest and principal on various loans.
During the same period, the country also signed new loan agreements worth $1.2 billion and received fresh commitments from development partners.
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According to ERD, foreign aid commitments surged by 375%, while foreign debt relief rose by 38.51%. Principal and interest payments on foreign loans increased by 10.23%.
ERD officials said both debt disbursement and development partner commitments grew compared to the same period last year, when development activities and project implementation were stalled due to the Mass Uprising in July–September 2024.
Meanwhile, foreign debt repayments continue to climb as the grace periods on loans taken for various development projects and budget support in previous years have ended.
