Dhaka, Sept. 21 -- Bangladesh's private sector outstanding external debt fell 4.0 per cent year on year (Y-O-Y) to US$19.78 billion at the end of June, as subdued investment and slow credit demand weighed on fresh inflows.

The contraction was less pronounced compared with the previous quarter, edging down less than 1.0 per cent from March 2025.

People familiar with the development said that the decline reflected a combination of repayments outstripping new disbursements and companies delaying expansion plans in the face of weak demand and political uncertainty.

Private sector credit growth slowed to 6.49 per cent in June - one of the lowest readings in recent months - underscoring what economists describe as a prolonged investment mala...