Bangladesh's foreign debt exceeds $104bn

 

Bangladesh's foreign debt stock has exceeded $104 billion, with the government and public sector loans totalling $84.45 billion.

The remaining $19.91 billion has been taken by the private sector, bringing the total foreign debt to $104.36 billion.

Bangladesh Bank released this data in a report on Tuesday, covering the foreign debt status up to the September quarter of 2024.

According to the report, 81 percent of the total foreign loans were received by the government sector, while the private sector accounted for the rest.

Of the total debt, $91.72 billion, or 88.19 percent, is long-term, while short-term loans in the private sector amount to $12.62 billion. At the end of the June quarter, the foreign debt stood at $103.40 billion, indicating an increase of over $960 million within three months.

Bangladesh's external debt has been increasing, but it's not considered high compared to other countries of similar size. However, the country's debt-to-exports ratio is rising, and its reserves-to-debt ratio is declining. These trends indicate that Bangladesh is becoming more vulnerable.