Although the country saw a huge year-on-year rise in the amount of foreign loans pledged from abroad in the first four months of the current fiscal year, their disbursements have dropped around 17 percent, showed government data.
Meanwhile, debt repayment increased by 52 percent.
Around $162.6 crore of foreign loans was disbursed in the July-October period of fiscal year 2023-24, according to data published by Economic Relations Division (ERD) recently.
As for the commitments, it was for $362.8 crore, which is a massive increase of 776.85 percent. Simultaneously, Bangladesh paid back $110.1 crore to development partners in this period.
Of the commitments, $338.53 crore were to come in the form of loans and the remaining $24.32 crore in the form of grants.
Project approvals and implementation alongside loan processes are usually sluggish at the beginning of a new fiscal year, said sources.
The significant increase in the commitment amount may help grow the disbursements in the coming months, they said.
Japan, Asian Development Bank (ADB) and World Bank committed to provide $150.33 crore, $103.38 crore and $30 crore respectively during this period, according to ERD data.
Japan released the highest amount of $51.23 crore followed by International Development Association ($33.24 crore) and ADB ($29.4 crore).
Russia released $26.07 crore.
