Foreign loan disbursement down 19% in nine months, repayments rise

Commitments from development partners also decline during the same period

Foreign loan disbursement has dropped by 19 percent in the first nine months of the current fiscal year compared with the same period a year earlier.

Between July and March of the 2025-26 fiscal, development partners and international lenders released $3.89 billion in loans and grants.

Data released by the Economic Relations Division (ERD) on Thursday shows this is a significant slide from the $4.80 billion disbursed during the corresponding months of the previous financial year.

The government has had to shell out $3.52 billion to settle interest and principal on existing debts during this period.

This marks an increase from the $3.21 billion paid out in the same timeframe last year.

Following the ousting of the Awami League government in the 2024 July Uprising, economic instability has persisted, with development activities yet to regain pace over the past year and a half, according to ERD officials, economists and analysts.

The report also shows that fresh commitments of foreign assistance declined to $2.8 billion, down from $3 billion a year earlier, reflecting a drop of more than 6 percent.