Bangladesh’s foreign debt flow down by 24.38% in July-Aug: ERD report

The foreign debt flow to Bangladesh has decreased by 24.38 percent – to USD 86.43 crore – in July-August of the current fiscal year (FY), compared to the previous FY.


The latest report of Economic Relation Division (ERD) revealed that Bangladesh received USD 86.43 crore in the first two months (July-August) of the current fiscal year, which was USD 1.14 billion in the same period last fiscal year. It shows a decrease of 24.38 percent in foreign credit.


The fiscal year 2022-23 started with a jump in foreign credit flow in continuation of the last financial year. In July, the first month of FY 2022-23, nearly USD 49 crore in foreign debt came into the country which was 48.50 percent more than July last year.


But, in August it stumbled. Donors have written off USD 37.63 crore credits this month, which is about 23 percent less than the previous month.


Bangladesh set a record in receiving low-interest foreign loans in FY 22 in the global situation that was turned upside down by the shock of the Russia-Ukraine war after pandemic. Donors waived more than USD 10 billion in foreign credits in FY 22.


The ERD, a wing of the Finance Ministry, released data on foreign credit waivers on Thursday, showing that USD 86.43 crore was received from donors in the first two months (July-August) of FY 23. Of them, project aid came to USD 83.29 crore. And the donation received is USD 3.14 crore.


During the same period last year, project assistance was USD 1.10 billion. Grants came in at USD 3.42 crore.


Bangladesh’s foreign credit continues to increase from the fiscal year 2017-18. In the same year, the foreign credit increased from USD 3 billion to USD 6.37 billion in one jump. Then in FY 2018-19, the debt was USD 6.54 billion.


Source: United News of Bangladesh