Bangladesh repaid more than twice the foreign loans disbursed by development partners in July, the first month of the current fiscal year. New external loan disbursements totalled $180.18 million, while repayments of principal and interest on earlier borrowing reached $453.23 million, according to an updated Economic Relations Division report released on Sunday. The repayment outflow exceeded new disbursements by $273.05 million.

For every dollar newly received during the month, Bangladesh spent about $2.5 servicing existing external debt. Loan disbursements were 13.39 percent lower than in July of fiscal year 2025-26, when development partners released $208.04 million. Meanwhile, foreign debt repayments increased by about 4 percent from $446.68 million in that earlier July.

The widening gap at the start of the fiscal year reflects slower new financing alongside rising instalment payments on past loans. Experts said pressure could increase as grace periods for loans linked to major projects end and principal repayments begin. They warned that if new disbursements do not rise as expected, foreign-currency inflows and financing management for development projects could be affected.