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.