Dhaka, June 23: Bangladesh has failed to secure fresh loan commitments from major development partners, including India, Japan, and Russia, during the first 11 months of the current fiscal year, according to the latest report by the Economic Relations Division (ERD).
The report, covering the July–May period, shows that four major lenders — India, Japan, Russia, and the Asian Infrastructure Investment Bank (AIIB) — did not make any new loan commitments, although they continued disbursing funds against previous agreements.
Following the student-led uprising on August 5, 2024, Bangladesh has not received any new loan assurances from India. Under three existing Lines of Credit (LoC) with India’s Exim Bank, Bangladesh is set to receive $7.36 billion, but disbursement has slowed significantly, with only $250 million released in the current fiscal year so far.
Russia, which is financing the Rooppur Nuclear Power Plant project, also made no new commitments during the period. However, it disbursed $930 million under ongoing agreements.
Japan, one of Bangladesh’s largest development partners, similarly refrained from new commitments, despite ongoing discussions on several projects. It released over $430 million against earlier pledges.
The AIIB also held back from fresh commitments, though it has shown interest in consortium financing alongside the Asian Development Bank (ADB).
Overall, Bangladesh secured $4.22 billion in foreign loan commitments during the July–May period, down from $5.50 billion in the same period of the previous fiscal year.
Meanwhile, Bangladesh repaid a record $4.13 billion in foreign debt during the same timeframe, while total foreign loans and grants received stood at approximately $4.58 billion, reflecting mounting pressure on the country’s external financing balance.
