Foreign debt rises to $114.98b

Bangladesh’s foreign debt grew by 3.65 percent from the previous quarter to reach $114.98 billion at the end of the April-June quarter of fiscal year 2026, according to central bank data.

At the end of the final quarter, public sector foreign debt increased by $4.19 billion to hit $95.10 billion. In contrast, private sector foreign debt declined by $140 million to stand at $19.89 billion.

Tap here to add The Daily Star as a trusted source

Earlier, public sector foreign debt had experienced a downward trend, sliding from $93.74 billion in June of the previous year to $90.91 billion by the end of March.

This earlier reduction was primarily attributed to sluggish implementation of foreign-funded development projects.

However, the public sector debt stock rebounded significantly after the government secured nearly $3 billion in crucial budget support from multilateral and bilateral development partners, including the World Bank and the Asian Development Bank (ADB), to navigate the economic fallout from the Middle East conflict.

Meanwhile, the contraction in private sector foreign debt was driven by reductions in short-term loans, buyer’s credit and trade credit.