Dhaka, Jan. 27 -- Bangladesh's foreign debt servicing surged by 27 per cent in the first half (H1) of the current financial year 2024-25, driven by escalating interest payments.

During the July-December period of FY25, the country repaid $1.98 billion, comprising $747.56 million in interest payments and $1.23 billion in principal repayments, according to data released by the Economic Relations Division (ERD) on Sunday.

In comparison, during H1FY24, Bangladesh repaid a total of $1.567 billion, which included $926 million in principal repayments and $641 million in interest payments.

The ERD data also revealed that loan repayments in local currency increased to Tk 23,675 crore in H1FY25, up from Tk 17,240 crore in the corresponding perio...