Mon, 26 October 2026
The Daily Ittefaq

Foreign debt repayments increased

Update : 26 Oct 2026, 14:48

Bangladesh's External debt servicing has jumped to $1,351.23 million during the 1st quarter (July-September) period of the current fiscal year (FY27).

According to the latest data of the Economic Relations Division (ERD), Bangladesh paid back more than double the foreign assistance it received in actual disbursements during the first quarter (July-September) of fiscal year 2026-27.

According to ERD data, external debt servicing costs soared to $1,351.23 million, while foreign aid disbursements reached $662.31 million.

During this July-September period, Bangladesh spent $1.351 billion on principal and interest payments on foreign loans during July-September of FY27, up 5.6% from $1.279 billion in the same period of the previous fiscal year, says the ERD data.

Of the total debt servicing in the first quarter, principal repayments stood at $858.92 million, up from $816.99 million during the corresponding period of FY26.

Interest payments also increased to $492.31 million from $462.96 million a year earlier.

The development partners disbursed $662.31 million in foreign assistance during the first quarter of FY27, down from $1.148 billion in the corresponding period of the previous fiscal year.

Of the total disbursement in July-September this year, $541.74 million came as loans and $120.57 million as grants.

Foreign commitments, however, showed a significant increase.

Development partners committed $1.273 billion in loans and grants during July-September of FY27, up from $910.67 million in the same period of the previous fiscal year - an increase of about 40%.

Of the new commitments, $1.148 billion was in loans, while $125.45 million came in grants.

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