Dhaka: Bangladesh received $180.18 million in foreign assistance in July, marking a 13.4 percent decline from $208.04 million disbursed in the same month of the previous fiscal year.
According to United News of Bangladesh, the provisional Foreign Assistance Monthly Report for FY2026-27, prepared by the Foreign Aid Budget and Accounts Wing of the Economic Relations Division, indicates that the country received $179.67 million in loans and $0.51 million in grants in July 2026. In comparison, July 2025 saw $207.73 million in loans and $0.31 million in grants, totaling $208.04 million.
The latest figures reveal a $28.06 million reduction in loan disbursement, equating to a 13.5 percent year-on-year decrease. However, grant disbursement increased by $0.20 million, or nearly 64.5 percent, during the month. Notably, no foreign assistance was disbursed under the food assistance category in either July 2026 or July 2025.
The report further highlights that foreign aid commitments during July 2026 amounted to $14.05 million, entirely in the form of grants, with no loan commitments recorded. In contrast, July 2025 saw total foreign aid commitments of $83.46 million, comprising $77.46 million in grants and $6 million in loans.
Meanwhile, Bangladesh's debt servicing obligations rose in July 2026 compared to the same month of the previous fiscal year. The country paid $453.23 million in debt servicing, consisting of $341.72 million in principal repayments and $111.51 million in interest payments. In July 2025, debt servicing totaled $446.68 million, including $327.72 million in principal and $118.96 million in interest, resulting in a $6.55 million increase, or about 1.5 percent, year-on-year.
In local currency, Bangladesh paid Tk 5,587.96 crore in debt servicing in July 2026, compared to Tk 5,447.79 crore in July 2025. The latest debt servicing payment included Tk 4,213.10 crore in principal repayment and Tk 1,374.86 crore in interest.
This increase in debt servicing occurs as foreign assistance disbursement has started the new fiscal year at a lower level than the previous year's opening month. Foreign assistance plays a crucial role in financing Bangladesh's development projects, particularly in sectors like infrastructure, energy, transport, and health. The disbursement of loans and grants largely depends on project implementation progress and compliance with development assistance conditions.
The July figures are provisional and may be revised in subsequent monthly reports.