B Mirror Desk : Bangladesh has paid back more debt in the first ten months (July–April) of the current fiscal year 2024–25 than it did in the prior fiscal year.
The Economic Relations Division (ERD) released a report today, May 29, stating that the nation had reimbursed development partners $3.507 billion in the first ten months of FY25.
In contrast, during the final fiscal year of 2023–2024, the nation had paid back a total of $3.37 billion.
The grace periods for many major loans obtained for budget support and mega projects in recent years have ended, according to ERD officials, which is the main reason why the pressure to repay debt is rapidly increasing.
They added that this mounting burden has also been exacerbated by high market-based interest rates.

ERD data shows that Bangladesh paid back $2.812 billion in principle and interest on foreign loans between July and April of FY24. Repayment of foreign debt increased by 24.73% in FY25 compared to FY24. Principal repayments have increased by 32.86% throughout this time, according to ERD. The government made principal payments to a number of development partners totaling $2.21 billion in the first ten months of FY25. Over the same time period in FY24, the sum was $1.663 billion.

However, there has been a 12.95% increase in interest payments from July to April.
Interest payments to development partners was $1.297 billion as of April of FY25, up from $1.148 billion in the same time the previous year.

According to economists, Bangladesh has recently taken out a number of huge loans with difficult terms, such as high interest rates and short repayment periods. Since many of these loans’ grace periods have already passed, debt repayments have increased.
Additionally, the grace periods for a number of Russian loans associated with the Rooppur Nuclear Power Plant Project will end in the next year or two, adding to the burden of debt repayment.