Dhaka, June 24 -- With sluggish project execution and tighter fiscal controls in play, Bangladesh has seen a steep drop in foreign loan disbursements, while repayments on earlier debt have risen markedly.

According to the latest report by the Economic Relations Division (ERD), disbursements between July and May fell by 20 percent year-on-year.

Over the same period, repayments--including both principal and interest--climbed by 23 percent.

Total foreign loans received in this period stood at $5.6 billion, down from $7.02 billion a year earlier.

The interim government has tightened fiscal controls to reduce the budget deficit by cutting the number of approved projects and closely reviewing funding allocations.

The ERD officials say thes...