TDS Desk:

Of the total repayment, $516.04 million was paid towards principal, while $182.88 million went towards interest.

Bangladesh repaid more than twice the amount it received in foreign assistance during the first two months (July-August) of the current fiscal year of 2026-27, according to a report by the Economic Relations Division (ERD).

The country received only $294.56 million in foreign loans and grants during the period, while the government paid $698.92 million to service previously taken foreign loans, said the report released today (27 September).

Of the total repayment, $516.04 million was paid towards principal, while $182.88 million went towards interest.

The pressure to repay foreign debt has increased as earlier loans have reached maturity, alongside a slowdown in development projects and a decline in the disbursement of foreign assistance.

According to ERD data, foreign assistance disbursements fell sharply in the first two months of FY27 compared with the same period of FY2025-26.

Bangladesh received $750 million in foreign assistance during July-August of FY26.

The country also received commitments for $240.39 million in foreign assistance during July-August of FY27. The figure was $243.81 million during the corresponding period of FY26.