Bangladesh sees 26pc rise in foreign loan disbursements in first 5 months of FY26

Bangladesh’s foreign loan and grant disbursements have risen by 26 per cent year-on-year in the first five months of the fiscal year 2025-26.

Data released on Monday by the Economic Relations Division (ERD) show that development partners and international lenders disbursed $1.95 billion between July and November, up from $1.54 billion during the same period a year earlier.

The growth rate, however, has slowed from 38.5 per cent recorded during the first four months of the fiscal year, suggesting that the early surge in inflows is moderating, according to bdnews24.com.

At the beginning of the previous fiscal year, which started amid political turmoil, a negative trend was evident across various economic indicators, and its impact was also reflected in this indicator. The current fiscal year, however, began with a surge in growth, which is now somewhat slowing.

In the ongoing fiscal year so far, foreign assistance amounting to $1.22 billion has been committed.

The government repaid $1.89 billion of its dues to financing institutions in the five months of the current fiscal year.

In the first five months of the previous fiscal year, $1.71 billion was repaid in principal and interest. The debt repayment between the periods has increased by 10.46 per cent.