Loan disbursements, commitments declines, repayment pressure increases

In the first two months (July and August) of the current 2026-27 fiscal year, a slowdown has been observed in both the disbursement of foreign assistance and new assistance commitments. 

On the other hand, the amount of principal and interest repayment on previously taken loans has increased.

This information has emerged from the latest provisional report of the Economic Relations Division (ERD) of the Ministry of Finance.

According to ERD data, a total of US$294.56 million in foreign assistance was disbursed in the past two months. In the same period of the previous 2025-26 fiscal year, the disbursement amount was US$750.70 million. By that measure, disbursement decreased by US$455.51 million in one year.

Of the amount disbursed in these two months, US$3.19 million came as grants and US$291.37 million as project loans. 

No funds were disbursed under food assistance during this period.

There has also been no major progress in commitments. A total of US$240.39 million in commitments was received in the past two months. 

Of this, grants amounted to US$97.11 million and project loans to US$143.28 million. In the same period of the previous fiscal year, total commitments stood at US$243.81 million.

The ERD report states that although disbursement and new assistance commitments have decreased, the pressure of foreign loan repayment has increased. 

In July and August, a total of US$698.92 million in loans was repaid. In local currency, this amounts to Tk 8,626 crore. In the same period of the previous fiscal year, US$667.11 million or Tk 8,131 crore had been repaid.

Of the amount repaid in these two months, US$516.04 million (approximately Tk 6,369 crore) was against principal, and US$182.88 million (approximately Tk 2,257 crore) was paid as interest.