Bangladesh spent $1,351.23 million — $1.35 billion, yaani about $135 crore — on principal and interest payments on foreign loans in July–September 2026, the first quarter of fiscal year 2026–27, while development partners disbursed $662.31 million, yaani about $66 crore, in foreign assistance, according to a provisional Economic Relations Division (ERD) report released on Monday, 26 October, The Business Standard reported.

Source: The Business Standard (ERD data)

Debt servicing rose 5.6% from $1.28 billion in the same quarter a year earlier. Principal repayments increased to $858.92 million from $816.99 million, and interest payments climbed to $492.31 million from $462.96 million. Of the money received, $541.74 million came as loans and $110.57 million as grants. Debt servicing exceeded inflows by $688.92 million in the quarter.

Source: The Business Standard; TOB News; Daily New Nation (ERD data)

New commitments moved the other way: development partners committed $1.27 billion, yaani about $127 crore, in loans and grants during the quarter, up nearly 40% from $910.67 million a year earlier — but commitments are pledges, not cash received, and the gap between pledges and actual disbursements widened. Among lenders, the World Bank's International Development Association disbursed the most, $196.51 million, followed by the Asian Development Bank at $162.11 million and India at $104.99 million, TOB News reported from the ERD data.

Source: TOB News (ERD data); The Business Standard

Economist Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), told The Business Standard the rising repayment burden reflected the volume of loans taken in previous years and their contract terms: loans taken under past agreements must be repaid, including principal and interest, with no scope to reduce or increase those obligations. He said the repayment burden would increase further over the next two to three years.

Source: The Business Standard