Foreign debt servicing cost crosses $4bn

Bangladesh's foreign debt servicing bill has crossed $4 billion for the first time, marking a sharp rise in repayment pressure.

The country paid just over $4 billion in the recently concluded 2024-25 fiscal year, a 21 percent jump from $3.37 billion the year before, according to provisional data from the Economic Relations Division (ERD) released yesterday.

In local currency terms, the debt servicing cost surged 32 percent year-on-year to Tk 49,390 crore in FY25, which increased fiscal pressure on the government.

The growing strain of these repayments comes as Bangladesh receives less foreign assistance than in previous years, compounding concerns over its external financial position.

Bangladesh received 17 percent less in foreign loans year-on-year, amounting to $8.56 billion in FY25, the lowest in four years.

Loan commitments by multilateral and bilateral lenders fell to $8.32 billion in the last fiscal year, down 22 percent year-on-year from $10.7 billion.