External debt repayment pressure has increased. In the first 9 months of the current financial year, more than 100 million dollars have been paid in interest on the loan. During the last July-March period, repayments of $105 million were made against foreign debt, which is more than double compared to the same period of the previous year. At the same time, Bangladesh paid $480 million in interest in the last financial year.
This picture emerged in the latest report prepared by the government’s Economic Relations Department (ERD) released on Sunday (April 21) on the updated situation of the country’s external debt.
According to ERD sources, the cost of foreign debt interest payments increased in the first 9 months of the current financial year. Which amount is about 89 million dollars compared to the same period of the previous year. Over $257 million in interest and principal has been repaid in the last 9 months. Last year at the same time it was 1.73 billion dollars.
The foreign debt repayment pressure comes at a time when the country has been experiencing a foreign exchange crisis for months. Analysts say that during the dollar-crisis period, extra money is being spent to pay off foreign debt, which is putting additional pressure on reserves and budgets.
Those concerned say that due to the short-term debt of China and Russia, the debt repayment pressure is increasing. Already the loan repayment of Rooppur nuclear power plant construction project has started. The loan repayment installments of the Metrorail project have also started. Apart from this, the debt repayment of the Karnaphuli tunnel project will also start soon.
The pressure will increase when the debt repayment of another mega project starts in the next two-three years. On the other hand, loan concessions have not increased much compared to earlier.
According to ERD sources, in the period of July-March, a total of 5.63 billion dollars have come. In the same period of the last financial year, which amounted to 536 million dollars.
