Record $2.05b foreign debt repayment in 5 months

The government has repaid a record $2.0476 billion in principal and interest on foreign loans in just five months after the BNP government took office. 

Despite the additional repayment pressure from the huge volume of loans taken during the ousted Awami League regime, the present government has been regularly servicing the liabilities.

The amount repaid during the five months from March to July this year is equivalent to around Tk 25,163 crore in Bangladeshi currency.

According to updated statistics of the Economic Relations Division (ERD), this is the highest-ever repayment of foreign loans in any five-month period so far.

During the same period last year, foreign debt repayment stood at US$1.8971 billion, or around Tk 23,310 crore. 

This means that the government's debt repayment during the period increased by US$150.4 million, or around Tk 1,849 crore, in a year.

According to ERD data, the government repaid US$1.3524 billion in principal and US$695.2 million in interest from March to July this year. During this period, the government had to repay an average of around US$410 million in foreign loans every month.

The BNP government, led by Prime Minister Tarique Rahman, took office on February 17 after winning the 13th parliamentary election on February 12.

One of the major challenges facing the government from the outset was the repayment of growing installments of foreign loans taken in previous periods. However, despite economic pressure and various challenges, the government has maintained continuity in regular foreign debt repayment.

According to policymakers, huge foreign loans taken during the previous Awami League government in the name of large infrastructure and mega projects have now become repayable.

As the grace periods of a significant portion of these loans have expired, the pressure to repay both principal and interest has increased substantially during the tenure of the present government.�"BSS