Outstanding external debt surges to $69.66 billion | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Outstanding external debt surges to $69.66 billion

Bangladesh

Saifuddin Saif
31 July, 2024, 10:00 am
Last modified: 07 August, 2024, 04:13 pm

Related News

  • Gas supply to industries increased, to keep improving: Energy adviser
  • Bangladesh repays $3.5b foreign debt in 10 months of FY25
  • Pay your workers by 28 May or prepare for jail: Adviser Sakhawat to factory owners
  • Dollar drops as traders eye Trump tax bill, G7 currency talks
  • Students, professionals can pay overseas course fees in dollars via banks from now on

Outstanding external debt surges to $69.66 billion

Foreign loan repayments will reach $5 billion within the next two years, says ERD

Saifuddin Saif
31 July, 2024, 10:00 am
Last modified: 07 August, 2024, 04:13 pm
Inforgraph: TBS
Inforgraph: TBS

Bangladesh's outstanding external debt surged to $69.66 billion by the end of FY24, driven by increased loan disbursements for mega-projects and budget support, marking an increase of $7.25 billion or 11.6% compared to the previous fiscal year, according to the Economic Relations Division (ERD).

Over the past five years, the country's outstanding external debt surged 58%. It reached $62.406 billion by the end of FY23, as per the ERD.

ERD officials indicate that the rising outstanding external debt will increase the pressure of loan repayment.

In the last financial year, the government repaid $3.36 billion in foreign loans, with over $2 billion of this amount going toward the principal.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The ERD projects that foreign loan repayments will reach $5 billion within the next two years.

Dr Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS, "As our debt continues to rise, so does the burden of repayment. In the next two to three years, loan repayments are expected to reach $5 billion-$6 billion."

"Without an increase in revenue collection and foreign exchange supply, the economy could face significant strain due to this repayment pressure," he added.

The ERD's preliminary outlook released last Sunday reported $9.267 billion in foreign loan disbursements for FY24, a figure the division anticipates may rise in the final assessment due to potential adjustments in data from development partners.

Consequently, the outstanding debt could also increase.

According to ERD officials, various megaprojects, including the Rooppur Nuclear Power Plant Project, Metrorail MRT-6, Padma Rail Link, Karnaphuli Tunnel, and the 3rd Terminal of Hazrat Shahjalal Airport, have been completed or are in the final stages of implementation.

As a result, loan disbursements from development partners for these projects have increased, leading to a rise in outstanding debts, they say.

Additionally, the government has secured budget support due to the economic situation caused by the Covid-19 pandemic and the Russia-Ukraine war, further contributing to the increase in outstanding external debt.

According to ERD data, the government has secured over $8.5 billion in budget support over the past five years, with funds typically disbursed as soon as the loan agreement is signed.

Since independence, Bangladesh has received more than $13 billion in budget support from development partners, with over 60% of this amount taken to address the economic crises caused by the Covid-19 pandemic and the Ukraine-Russia war.

The latest outlook accounts for loans taken by the government through the ERD for various development projects and to meet budget deficits from development partners. However, it does not include high-interest buyer's credit or commercial loans taken by various government agencies. For instance, loans obtained by the government from abroad to purchase fuel oil are not included in this calculation.

Stakeholders expressed concern over the increasing reliance on bilateral development loans, which typically demand repayment within 3 to 15 years, unlike multilateral loans. This shorter repayment period accelerates the debt servicing burden.

Moreover, the requirement of upfront payments for bilateral loans increases their overall cost. Consequently, a rise in bilateral debt can intensify pressure on both the balance of payments and the government budget.

$44.69 billion in pipeline

Meanwhile, according to the ERD's preliminary outlook, foreign loans and grants in the pipeline totaled $44.698 billion at the end of FY24, with most of this amount being debt. This is up from $43.837 billion at the end of FY23. 
 

Dollar / industry / debt

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    No desire to be part of next elected govt: CA Yunus
  • File photo of BNP Standing Committee Member Amir Khasru Mahmud Chowdhury. Photo: Collected
    Khasru flies to London to join Yunus-Tarique meeting
  • File Photo: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Gas supply to industries increased, to keep improving: Energy adviser
  • Bangladesh repays $3.5b foreign debt in 10 months of FY25
  • Pay your workers by 28 May or prepare for jail: Adviser Sakhawat to factory owners
  • Dollar drops as traders eye Trump tax bill, G7 currency talks
  • Students, professionals can pay overseas course fees in dollars via banks from now on

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

1h | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

23h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh

More Videos from TBS

WB predicts worst decade for global growth since 60s

WB predicts worst decade for global growth since 60s

1h | TBS Stories
Foreign firm to draft merger plan for investment promotion agencies

Foreign firm to draft merger plan for investment promotion agencies

2h | TBS Insight
US-China London meeting ends as planned

US-China London meeting ends as planned

3h | TBS World
When will the heat wave subside?

When will the heat wave subside?

3h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net