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Foreign aid inflow soars almost 50pc in July-Nov period

| Updated: December 28, 2021 16:43:38


Illustrative photo Illustrative photo

The foreign-aid inflow to Bangladesh has marked an impressive 49-per cent growth in the first five months of the current fiscal year (FY), 2021-22, official data showed on Monday.

The overseas development partners disbursed US$3.09 billion worth of medium- to long-term (MLT) loans and grants during the July-November period of FY 22, which is 49.44 per cent higher than that in the same period of FY 21, the Economic Relations Division (ERD) data showed.

During the first five months of FY 21, the multilateral and bilateral development partners provided $2.07 billion as foreign assistance, the ERD showed.

A senior ERD official said the Asian Development Bank's (ADB) $840 million financial support for purchasing Covid-19 vaccines prompted the foreign aid inflow.

The development partners, including the ADB, the World Bank (WB), the Japan International Cooperation Agency (JICA), the Islamic Development Bank (IDB) and China, disbursed concessional aid every year for development of Bangladesh.

Meanwhile, the country also received a significant amount of foreign aid commitment, amounting to $3.93 billion, as loans and grants during the July-November period of the current FY, the ERD data showed.

In the corresponding period of the last FY, the foreign assistance commitment was recorded at $1.71 billion.

A deputy secretary at the ERD told the FE that foreign aid disbursement in the first five months of the current FY was impressive, as the ADB already released $1.44 billion worth of loans.

Of the total ADB assistance, some $840 million was disbursed for procuring Covid-19 vaccines from overseas market, he added.

Besides, the JICA disbursed $450 million worth of loans and grants as well as China $380 million loans during the July-Nov period of the current FY against different ongoing development projects in the country.

Of the total $3.09 billion released aid during the period,

the development partners disbursed $3.01 billion as loans and $76.20 million as grants, the ERD data showed.

In the same period of the last FY, the government received $1.99 billion as loans and $69.44 million as grants from the overseas development partners.

According to the ERD, the government repaid $868.25 million worth of interest and principals for its total outstanding loans during the July-November period of the current FY.

Of the repaid amount, the government repaid $642.98 million as principal of outstanding loans and $225.27 million as interest to the overseas lenders.

In the same period of the last FY, a total of $746.71 million worth of interest and principal of the outstanding loans was repaid, the ERD data showed.

Of the amount, the government repaid $540.63 million as principal and $206.07 million as interest of the outstanding loans.

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