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Foreign debt repayments rise in July
BY Insider Desk
August 30, 2025

Bangladesh repaid $446.68 million in foreign loans in July, the first month of the 2025-26 fiscal year, according to new figures from the Economic Relations Division (ERD).
The amount, covering both principal and interest, was higher than the $385.67 million paid in the same month the previous year. Of the total, $327.72 million went toward principal repayments, compared with $264.88 million in July last year. Interest payments stood at $118.96 million, slightly below the $120.79 million recorded in July 2024.
At the same time, inflows were weaker. Bangladesh received $202.75 million from development partners in July, with fresh commitments totaling $83.46 million, up from $16.40 million in the same period of the previous fiscal year.
In FY25, the country repaid $4.09 billion in foreign loans. Its total external debt stock rose to $74.34 billion by the end of that year, marking an 8% increase from the previous year. Loan agreements and disbursements also fell, with $8.32 billion in new loans signed and $8.57 billion disbursed, both lower than FY24 levels.
In July of FY26, the Asian Development Bank emerged as the top lender, disbursing $77.5 million, followed by the World Bank with $59.07 million. Japan and India contributed $17.24 million and $13.62 million, respectively, with other partners releasing $35.33 million.
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