Bangladesh received $180.18 million in new foreign loans from development partners in July, the first month of the current fiscal year, while repaying $453.23 million in principal and interest on earlier borrowing. The government therefore paid $273.05 million more in external debt obligations than it received in new disbursements, according to an updated Economic Relations Division report released on Sunday.

Foreign loan disbursements in July were 13.39 percent lower than in the same month of the previous fiscal year, when Bangladesh received $208.04 million. The July repayment total included instalments, interest and principal on existing external loans.

Bangladesh had paid $446.68 million in principal and interest during the first month of fiscal year 2025-26, meaning the comparable repayment cost rose by about 4 percent over one year. Economists said debt payments exceeding new loan releases are increasing pressure on external financing, with potential effects on funding for development projects and foreign-exchange management if instalment and interest burdens continue to grow.