Bangladesh receives record $8.41b foreign loans in 11 months of FY22


FE Team | Published: June 23, 2022 18:04:53 | Updated: June 24, 2022 08:39:14


Bangladesh receives record $8.41b foreign loans in 11 months of FY22

Bangladesh received a record US$8.41 billion in foreign loans in 11 months of the current FY22, the Economic Relations Division said on Thursday.

At the current exchange rate, the amount is equivalent to Tk782.21 billion, the highest loan ever received in a single fiscal year. The amount is 47 per cent higher than the previous fiscal year.

The ERD officials estimate that the foreign debt will exceed $9.0 billion by the end of the fiscal year on June 30, 2022.

After the economic crisis in Sri Lanka, there is a lot of talk about Bangladesh's foreign debt.

However, economists and analysts are dismissing the comparison between the two countries. They say foreign debt is still below 13 per cent of Bangladesh's GDP.

In case of Sri Lanka, it is close to 50 per cent, says a report on UNB.

Economist and researcher Ahsan H Mansur said, "The leap has been made by receiving more loans than expected from various donor countries and organisations, including the World Bank and the ADB, to offset the effects of the two-year epidemic."

Analysis of ERD data shows that in the last FY21, Bangladesh received $7.10 loan assistance from development partners.

Before that, in the fiscal year 2019-20, Bangladesh received $7.38 billion foreign loan that was the history of the country till FY21.

Foreign debt has been increasing in Bangladesh since FY18. In the same year, it jumped to $6.37 billion. Then in FY19 it stood at Tk6.54 billion.

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