Bangladesh records 35% rise in foreign loan disbursement in Q1 of FY2026

Bangladesh records 35% rise in foreign loan disbursement in Q1 of FY2026
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Online Desk

Published: 2025-11-01 18:12:32

Updated on: 2025-11-01 18:25:11

The Bangladeshi government reported that foreign loan disbursements in the first quarter of the current fiscal year 2025-26 rose by 35 percent compared with the same period last year.

Data published on Saturday by the Economic Relations Division (ERD) indicated that foreign loan releases between July and September reached $1.15 billion. In comparison, $846.1 million was disbursed during the same months of the previous fiscal year.

The economy had experienced a slowdown amid the unrest caused by the quota reform movement.

ERD statistics show that in the first three months of FY2025–26, the government repaid approximately $1.28 billion in foreign loans, comprising $816.8 million in principal and around $462.9 million in interest. In the corresponding period of the previous fiscal year, repayments totalled $1.13 billion, reflecting a rise of about 13.5 percent.

During July–September, commitments for foreign loans and grants amounted to $910.6 million, compared with just $27.4 million in the same period last year.

For the full 2024–25 fiscal year, foreign loan disbursement stood at $8.57 billion, down from $10.28 billion in FY2023–24. Despite the decline in disbursements, loan repayments increased to $4.08 billion, which included $2.59 billion in principal and $1.49 billion in interest.

–AGENCIES