Foreign debt rises to $112b

Bangladesh's foreign debt rose in the last quarter of the fiscal year 2024-25, while borrowings by the private sector declined, according to Bangladesh Bank data.

Total outstanding foreign debt stood at $112.15 billion at the end of June 2025, up 7 percent from $104.80 billion in March.

The government accounted for most of the increase. Its outstanding debt rose to $92.37 billion in June from $84.91 billion three months earlier, reflecting a 9 percent rise.

Debt in other corporations also increased, reaching $12.18 billion in June compared to $11.30 billion in March, an 8 percent rise.

In contrast, private sector foreign debt edged down by around 1 percent to $19.77 billion in June from $19.88 billion in March.

The fall is attributed to weak demand, with private sector credit growth standing at 6.49 percent in June, a historically low level, as the central bank usually sets a double-digit target in its monetary policy.

The government typically secures loans from development partners such as the World Bank and the Asian Development Bank. These are usually long-term borrowings, with funds released gradually as projects advance.

Public sector corporations, however, depend on both short-term and long-term loans. Over the past year, their short-term borrowing has decreased, while long-term debt rose slightly, Bangladesh Bank data shows.