Bangladesh Receives Lowest Foreign Loan Commitments in 14 Years While Facing Record Debt Repayment Pressure

❐ BD Digest Desk

The just-ended 2025-26 fiscal year has seen a major decline in foreign loan commitments from development partners.

According to the latest report of the Economic Relations Department (ERD), Bangladesh received a total of $5.243 billion in foreign loan commitments this fiscal year, the lowest in the last 14 years.

On Sunday, August 2, ERD published this updated report on external debt.

Data analysis shows that the previous lowest pledge was in the 2011-12 fiscal year, which amounted to $4.764 billion. Since then, the pledge amount has not fallen so low in any other fiscal year.

However, the amount of loan pledged in the 2014-15 fiscal year was $5.258 billion, which is almost the same as the just-exited fiscal year.

Bangladesh has set a new record in repayments despite a decrease in loan commitments.

According to the report, the country has paid off its highest ever debt in the 2025-26 fiscal year. The amount of debt repaid during this period stood at $4.494 billion, compared to $4.087 billion in the previous fiscal year.

ERD regularly monitors and publishes information on loan flows and repayments with development partners.