Business Desk :
The country’s foreign debt service shot up significantly to an annual rate of 45% over the last few months, much of it on account of high interest payments.
The government had spent $1.86 billion in the first 7 months (July-Jan) of the current FY24 for repayment to lenders, over $500 million higher than the corresponding period of last FY23, government sources said.
They also said that Bangladesh’s debt repayment jumped significantly mainly due to a record-high amount of interest payments against the outstanding total loans. The rise in medium- to long-term (MLT) loans and a higher borrowing trend of the government have already created further pressure on the country’s falling forex reserves.