Debt repayments more than double foreign loan disbursements in July-August: ERD

During the two months, $294.56 million in foreign loans was disbursed, while $698.9 million had to be repaid, according to the Economic Relations Division’s (ERD) latest report released on Sunday.

The Bangladesh government repaid more than twice as much in foreign loans as it received in disbursements of foreign assistance in the first two months of the current 2026–27 fiscal year — July and August. During the two months, $294.56 million in foreign loans was disbursed, while $698.9 million had to be repaid, according to the Economic Relations Division (ERD) latest report released on Sunday.

The report shows that a total of $698.92 million in loans was repaid in July and August, equivalent to BDT 86.26 billion. During the same period of the previous fiscal year, $667.11 million, or BDT 81.31 billion, was repaid. Of the amount repaid over the past two months, $516.04 million, or around BDT 63.69 billion, was paid towards principal. Another $182.88 million, or around BDT 22.57 billion, was paid in interest.

While $294.56 million in foreign loans was disbursed in July and August of the current fiscal year, the amount was $750.07 million during the same period of the previous fiscal year. Accordingly, disbursements fell by $455.51 million year-on-year.

In addition, new loan commitments of $240 million were received, compared to $243.8 million in the same period of the previous year.

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