Published : 31 Aug 2026, 04:40 AM
Updated : 08 Sep 2026, 09:37 AM
Bangladesh’s foreign debt payments have far outstrip fresh loan inflows in July, with repayments reaching two and a half times the amount received from development partners, Economic Relations Data (ERD) data shows.
Donor countries and agencies released $180.18 million in loan assistance, while Bangladesh paid $453.23 million in principal and interest on accumulated debt during the month.
Repayments were 151.54 percent higher than disbursements.
The 2026-27 fiscal year began on Jul 1, with its first two months, July and August, nearing completion. The ERD published July’s figures on Sunday.
In July last year, the first month of FY2025-26, Bangladesh received $208.04 million in loans, $27.86 million more than this year, representing a 13.39 percent decline.
It repaid $446.68 million in principal and interest in July 2025. This means repayments increased 1.5 percent this July.
Of the July payments, $341.72 million went towards principal and $111.51 million towards interest.
ERD officials said Bangladesh had taken on substantial foreign loans to finance mega projects before the Awami League government fell amid the 2024 student-led mass movement.
Those loans now have to be repaid with interest, increasing pressure on the country.
The government repaid a record $4.4941 billion in principal and interest during FY2025-26, 10 percent more than the $4.0869 billion paid in FY2024-25.
ADB Tops Disbursements
The ADB provided the largest share of July’s $180.19 million disbursement at $65.45 million, followed by the World Bank with $47.53 million and JICA with $38.66 million.
India provided $26.69 million, while other donors provided $1.86 million.
AIIB, China and Russia made no disbursements in July.
New loan commitments also plunged to just $14.05 million from $83.46 million a year earlier. The World Bank, ADB, JICA, China, Russia and AIIB made no new commitments.
