Staff Reporter :
Foreign loan commitments and disbursements to Bangladesh have dropped sharply, while loan repayments have risen significantly during the first five months of the 2024-25 fiscal year, according to data from the Economic Relations Division (ERD).
The ERD reports that loan commitments fell by 91 per cent, with development partners pledging just $522.68 million between July and November, compared to $5.859 billion during the same period last year.
Loan disbursements also declined by 27 per cent, falling to $1.544 billion from $2.11 billion in the corresponding period last year.
In contrast, loan repayments increased by 28.44 per cent. Bangladesh repaid $1.71 billion in principal and interest during the period, up from $1.33 billion in the same timeframe the previous year.
The sharp decline in loan commitments and disbursements has raised concerns about Bangladesh’s ability to secure foreign funding for its development projects. Experts suggest that global economic uncertainties, combined with apprehensions about Bangladesh’s economic stability, are key factors behind this trend.
The rising debt servicing burden could further strain the government’s financial capacity, potentially limiting investments in crucial areas such as infrastructure development and social programmes.The ERD figures highlight a challenging fiscal environment, underscoring the need for strategic financial planning and increased focus on sustaining foreign funding for development priorities.
