Bangladesh repaid $698.92 million in foreign debt during the first two months of fiscal year 2026-27, more than twice the $294.56 million it received in foreign loans and grants during the same period, according to the Economic Relations Division (ERD).
Of the total debt repayment, $516.04 million went toward principal payments, while $182.88 million was paid as interest on previously taken foreign loans.
The repayment pressure has increased as earlier loans have reached maturity, while foreign aid disbursements have slowed amid weaker implementation of development projects.
According to ERD data, Bangladesh received $294.56 million in foreign assistance during July-August of FY27, sharply down from $750 million received during the same period of FY26.
The latest figures show that foreign aid disbursement declined by more than $455 million year-on-year during the first two months of the current fiscal year.
Meanwhile, new foreign aid commitments also remained almost unchanged. Bangladesh secured commitments worth $240.39 million during July-August of FY27, compared with $243.81 million in the corresponding period of FY26.
The figures indicate a widening gap between foreign assistance inflows and debt servicing obligations as Bangladesh continues to repay loans contracted in earlier years.
