Foreign debt servicing 137% higher than new loan inflows in Jul-Aug

Bangladesh’s foreign debt repayments hit $699 in July-August, nearly 137% higher than new foreign loan disbursements over the same period, according to data revealed by the Economic Relations Division on Sunday.

Of the total serviced loan, $516.04 million was the principal amount, while $182.88 million was paid in interests.

Meanwhile, foreign assistance disbursements plunged 61% year-on-year to $294.56 million, down from $750.07 million in July-August of fiscal year 2025-26.

The sharp decline was driven by slower development project-related activities and lower loan disbursements. Project assistance loans fell to $291.37 million from $746.16 million, while project assistance grants declined marginally to $3.19 million from $3.91 million.

No food assistance was disbursed during the period in either fiscal year.

However, new foreign assistance commitments were relatively stable compared with the past year’s trend.

Bangladesh secured commitments worth $240.39 million during July-August, compared with $243.81 million in the same period last year.