TDS Desk:

Bangladesh’s foreign loan commitments from development partners rose sharply in the first five months of the current fiscal year (2025–26), increasing by 133% compared to the same period last year.

According to an updated report released by the Economic Relations Division (ERD) today (28 December), Bangladesh signed new loan agreements or received commitments worth about $1.219 billion from development partners between July and November.

In the corresponding period of the previous fiscal year, commitments stood at only $522.68 million.

ERD officials said commitments had declined last fiscal year due to the mass uprising, the fall of the government, administrative instability, and a resulting crisis of confidence among development partners. However, with the overall situation improving, the volume of new commitments has increased significantly.

According to ERD sources, foreign loan disbursements increased during the July–November period compared to the same timeframe last year.

Development partners disbursed $1.94 billion during the period, while Bangladesh repaid almost an equivalent amount.

During July–November of the current fiscal year, Bangladesh paid $1.89 billion in principal and interest on various foreign loans, nearly matching the amount disbursed by development partners.