In the first month of the fiscal year, foreign aid disbursements have faced a setback, with more money being paid out in debt repayments than received.
This shortfall occurred despite a need for a boost in foreign aid to counteract the domestic economic stagnation caused by violence and unrest surrounding the Anti-discrimination Student Movement that brought down the Sheikh Hasina regime.
In July, Bangladesh received a total of $358.3 million in foreign aid.
However, during the same period, $385.6 million was paid out in debt repayments, the Economic Relations Division, or ERD, reported on Wednesday.
Of the total foreign aid received, $287 million was in the form of loans, while $71.3 million came as grants. Conversely, repayments included $265 million in principal and over $120 million in interest. In July of the previous year, the government had repaid $250 million in interest and principal on foreign loans. —bdnews24.com
