Bangladesh’s debt burden is increasing as foreign loan repayments crossed $3.5 billion in the first nine months (July–March) of the current fiscal year, according to the Economic Relations Division (ERD).
The country repaid $3.525 billion in principal and interest, while total foreign inflows—including loans and grants—stood at $3.89 billion. The rise in repayments reflects growing borrowing for development projects under the Annual Development Programme (ADP).
At the same time, domestic borrowing has surged, with over Tk 1 trillion taken from the banking sector to finance the budget deficit, intensifying overall fiscal pressure.
Officials caution that annual foreign debt servicing may exceed $5 billion if the trend continues, up from $4.09 billion in the previous fiscal year, signalling mounting challenges for Bangladesh’s financial stability.
