Finance Minister Abul Hassan Mahmood Ali stated today that the government is facing pressure to repay foreign loans, but the situation is not yet dire. Responding to reporters during a press briefing after a meeting with an IMO delegation, he mentioned that foreign loan repayments are ongoing. Data from the Economic Relations Division (ERD) indicates that Bangladesh paid $2.67 billion in interest and principal on loans in fiscal year 2022-23, compared to $2.01 billion in the previous fiscal year. The increase is attributed to the end of grace periods for many loans and rising interest rates on market-based loans.
ERD’s projection suggests that Bangladesh will need to pay $3.56 billion in the upcoming fiscal year (FY24). Debt payments are expected to rise to $4.21 billion and $4.72 billion in FY25 and FY26, respectively. Minister Abul Hassan acknowledged concerns about inflation, expressing a desire to see it decrease. He noted that despite decisions taken by the new government to improve the economic situation, implementation is pending.
Returning from the IFAD conference in Italy, Minister Abul Hassan highlighted Bangladesh’s significant assistance from IFAD, totaling around $2 billion, with expectations of increased support in the future. Regarding the meeting with the IMO delegation, he mentioned ongoing assistance from the migration agency to Bangladesh in areas related to migration and beyond.
