Dhaka, Aug. 29 -- Foreign debt repayments surged sharply at the start of FY2025-26, with Bangladesh paying more than twice the amount it received from development partners in July.
According to the latest Economic Relations Division (ERD) report released on Thursday, the government repaid $446.68 million in the first month of FY26 - comprising $327.72 million in principal and $118.96 million in interest.
In contrast, the country received only $202.44 million in fresh disbursements during the same period.
ERD officials said repayment pressure is rising as grace periods on several major loans have ended.
Many of these loans were contracted under stringent terms, involving short repayment schedules and relatively high interest rates, which...