Bangladesh did not receive any new loan commitments from five major partners—including India, China, Russia and Japan—during the first five months of the current fiscal year (FY2025-26), according to the latest official data from the Economic Relations Division (ERD).
An ERD update on the country’s external loan situation for the July–November period shows that while these key development partners refrained from making fresh commitments, they continued to disburse funds against previously agreed loans.
During the same period, the Asian Infrastructure Investment Bank (AIIB) also made no new loan pledges.
The ERD report, released on Monday, reveals that development partners and countries collectively disbursed USD 1.95 billion to Bangladesh in the first five months of the fiscal year.
However, the government spent almost an equivalent amount—USD 1.89 billion—on repaying principal and interest on earlier foreign loans during the same period.
This means that nearly the entire volume of foreign loans received between July and November was offset by debt servicing, highlighting growing pressure on Bangladesh’s external financing position amid rising repayment obligations.
According to ERD sources, Bangladesh secured total loan commitments worth USD 1.22 billion during the July–November period of FY2025-26. Notably, no new commitments were received in November alone.
Central Bank mandates banks to report private sector foreign loans at CIB database
Of the total commitments secured over the five months, the Asian Development Bank (ADB) accounted for the largest share, pledging USD 580 million.
The World Bank committed close to USD 200 million, while other development partners and countries together promised around USD 620 million during the first four months of the fiscal year.
However, none of the major bilateral partners—India, China, Russia or Japan—featured in the new commitment list.
For comparison, Bangladesh had received loan commitments amounting to USD 520 million during the first four months of the previous fiscal year.
In terms of actual loan disbursement, Russia emerged as the largest source during the July–November period, releasing USD 550 million, primarily against ongoing large-scale projects.
The World Bank followed with USD 430 million in disbursements, while the ADB released USD 335 million.
China and India disbursed USD 195 million and USD 90 million respectively, while Japan released USD 85 million over the five-month period, the ERD data showed.
Officials at the ERD said the disbursement trend reflects continued implementation of previously approved projects, even as new loan commitments from major partners remain subdued.