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● High debt repayment pressure strains Bangladesh finances as aid slows ● World Rabies Day: Bangladesh steps up awareness as dat bite cases rise ● Rooppur plant uranium shipment to arrive from Oct 1 ● Bangladesh issues travel warning for Nepal ● DMP reshuffles police officials following attack on Mirpur health center ● MP Nazrul Islam Azad: Those saying will return in Dec may return in 2040 ● BAU develops plantain-based technology to enhance poultry meat nutrition

High debt repayment pressure strains Bangladesh finances as aid slows

Published : Monday, 28 September, 2026 at 10:00 AM

Observer Online Report

Collected Photo

Bangladesh paid more than double the amount in foreign debt repayments compared to fresh aid inflows during the first two months of the current 2026-27 fiscal year, according to latest Economic Relations Division (ERD) data released on Sunday.

The ERD report revealed that the country received $294.56 million in foreign aid disbursements during the July-August period, while paying out $698.92 million in principal and interest repayments.

The net outlay resulted in debt servicing exceeding total foreign assistance by $404.36 million during the two-month period.

Fresh aid releases dropped by over half compared to the same period of the previous fiscal year, when disbursements stood at $746.16 million.

Of the total debt servicing, principal repayments accounted for $516.04 million, while interest payments stood at $182.88 million.

In contrast, total debt servicing during the same period of the previous fiscal year stood at $667.11 million, comprising $488.79 million in principal and $178.32 million in interest.

ERD officials attributed the rising repayment pressure to the expiration of grace periods on several mega projects undertaken by the previous administration.

Commitments from development partners remained modest at $240.39 million during July-August, down slightly from $243.81 million recorded in the same period last fiscal year.

Among multilateral and bilateral lenders, the Asian Development Bank (ADB) led disbursements with $128.72 million, followed by the World Bank with $73.96 million, Japan with $39.04 million, and Russia with $20.65 million.

-SA

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Editor : Iqbal Sobhan Chowdhury

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