For the first time in its history, Bangladesh has surpassed $4 billion in annual foreign loan repayments. In the recently concluded fiscal year 2024–25, the country repaid a total of $4.09 billion, including both principal and interest — marking the highest amount ever paid in a single year. The figure represents a significant jump from the previous year’s repayment of $3.37 billion.
This data was revealed in the latest update from the Economic Relations Division (ERD), which tracks commitments, disbursements, and repayments of foreign loans. Officials have expressed concern over the increasing burden of external debt, warning that it poses a growing challenge to the economy.
According to ERD sources, from July 2024 to June 2025, Bangladesh repaid $408.69 million monthly on average. Of the total amount, $2.59 billion was spent on repaying the loan principal, while $1.49 billion went toward interest payments.
Despite the increase in repayments, disbursements and new commitments of foreign loans have declined. In the first 11 months of FY 2024–25, Bangladesh received $5.6 billion in foreign loans — down from $7.02 billion during the same period of the previous fiscal year. New loan commitments also fell to $5.48 billion, compared to $7.92 billion a year earlier. In FY 2023–24, the total disbursement stood at $8.57 billion, with commitments reaching $8.32 billion.
Among the top lenders, the Asian Development Bank (ADB) led the way, disbursing $2.52 billion during the fiscal year. The World Bank and Japan followed. Notably, countries such as India, China, and Russia did not make any new loan commitments during the fiscal year, although previously approved loans from these countries continued to be disbursed.
Fourfold Increase Over a Decade
Foreign loan repayments by Bangladesh have seen a steep rise over the past decade. In FY 2012–13, total repayments stood at $1.1 billion. By FY 2021–22, the figure had almost doubled to $2.01 billion. It rose to nearly $3 billion in FY 2022–23 and then to over $4 billion in the latest fiscal year, signaling a nearly fourfold increase over 12 years.
Looking ahead, the pressure on repayment is expected to intensify. Several major infrastructure projects — including the Rooppur Nuclear Power Plant and the third terminal at Hazrat Shahjalal International Airport — are entering repayment phases, particularly to Japan. Loan repayments have also commenced for the Karnaphuli Tunnel and metro rail projects.
ERD officials noted that the end of grace periods for many of these large-scale projects is now bringing the repayment load to the forefront, adding a new layer of fiscal pressure for the government.
