In July, marking the beginning of the fiscal year 2025-26, Bangladesh made a repayment of $446.68 million in foreign debt.

As reported by the Economic Relations Department (ERD), Bangladesh settled approximately $446.68 million in principal and interest to its development partners during July of the fiscal year 2025-26.

In July of the previous fiscal year (FY-25), the foreign debt repayment totaled $385.67 million.

An analysis of ERD data indicates that in July of the fiscal year 2025-26, the government repaid $327.72 million in principal to various development partners, compared to $264.88 million in July of the fiscal year 2024-25.

During July of the fiscal year 2025-26, the government also paid $118.96 million in interest, which was slightly lower than the $120.79 million paid in July 2024-25.

However, in July 2025-26, the government received $202.75 million from development partners. Conversely, new commitments in July 2025-26 reached $83.46 million, up from $16.40 million in July 2024-25.

In the previous fiscal year, Bangladesh repaid a total of $4.086 billion in principal and interest on its external debt.

By the end of the 2024-25 fiscal year, Bangladesh’s external debt rose to $74.34 billion, reflecting an 8 percent increase from the prior year.

According to ERD data, Bangladesh entered into new loan agreements with development partners amounting to $8.323 billion in the 2024-25 fiscal year, which is a decrease from the $10.739 billion recorded the previous year.

Similarly, loan disbursements fell to $8.568 billion, down from $10.283 billion in the preceding fiscal year.

In July of the 2025-26 fiscal year, the Asian Development Bank (ADB) provided the largest loan among development partners, totaling $77.50 million. Following this, the World Bank disbursed $59.07 million. Additionally, Japan contributed $17.24 million, India $13.62 million, and other development partners collectively disbursed $35.33 million.