In the first two months of the current fiscal year, Bangladesh experienced a significant rise in foreign loan commitments from abroad, according to government data.

However, disbursements of these loans saw a slight decline, while debt repayments increased by 38.2%.

Data from the Economic Relations Division (ERD) revealed that foreign loan disbursements amounted to around $73.90 crore during the July-August period of fiscal year 2023-24, representing a decrease of 14.48%.

In contrast, loan commitments surged to $114 crore, marking a massive increase of 275%. Bangladesh also paid back $40.05 crore to its development partners.

Sources explained that project approvals, implementation, and loan processes typically progress slowly at the start of a new fiscal year, as most projects are in the preparatory phase.

However, they anticipate the substantial increase in commitment amounts may lead to higher disbursements in the coming months.

During this period, the Asian Development Bank (ADB) and the World Bank committed to providing $79 crore and $30 crore, respectively.

Notably, there were no commitments from the Asian Infrastructure Investment Bank, India, China, and Russia in the first two months, as indicated by ERD data.

Japan emerged as the largest contributor, releasing $30.88 crore, followed by the ADB ($15.74 crore) and the World Bank ($13.2 crore). Russia’s contribution stood at $4.25 crore.