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Bangladesh Economy

Foreign Loans Mostly Used for Debt Repayment: ERD Report

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1Nojor Desk
  • 22 Jun 25
  • 10:53 PM

Over two-thirds of Bangladesh’s foreign loans disbursed in the first 11 months of FY2024 were used to repay previous debts, according to the ERD. Out of $5.6 billion received, $3.78 billion went toward servicing past loans. Loan disbursements fell by over 20% compared to last year, while debt repayment rose by 23%. Sluggish project implementation has also slowed new disbursements. Loan commitments from development partners dropped nearly 31%. Despite export and remittance growth, the government faces rising debt pressure and reduced foreign loan demand in the next budget.

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Amar Desh 22 Jun 25

ERD Report: 67% of Foreign Loans Used for Debt Repayment

The Government of Bangladesh continues to carry the burden of foreign loans taken for unnecessary projects, putting additional pressure on the economy. Every month, the pressure to repay previous debts is increasing. According to the latest report published on Sunday by the Economic Relations Division (ERD), 67% of the foreign loans disbursed in the first 11 months of the current fiscal year have been spent on repaying earlier debts.

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