Bangladesh's foreign debt servicing increased by 27 percent year-on-year in the first half of the fiscal year 2024-25, owing to an expanded foreign loan portfolio and higher global interest rates.

During the period from July to December of the fiscal year 2024-25, the country paid $1.98 billion in principal and interest, up from $1.57 billion in the same period of the previous year, according to data released by the finance ministry today.

In local currency, the payments rose to Tk 23,675 crore from Tk 17,240 crore, further intensifying pressure on public finances.

At the same time, foreign loan disbursements declined by 13 percent year-on-year to $3.53 billion during the same period.

Total commitments for grants and loans also experienced a significant decrease, dropping by 67 percent to $2.29 billion compared to $6.98 billion in the previous year.