Country's private short-term foreign loans decline again
Private sector short-term foreign loans have declined further in January this year as businesses focused on repaying existing loans rather than taking new ones.
According to Bangladesh Bank data, the short-term foreign loans declined to $11.25 billion in January from $11.79 billion in December, declining by 4.58% in just a month. The figure was $13.65 billion in June last year and $16.41 billion in December 2022.
Bankers attributed the decline in short-term loans to businesses prioritising loan repayments. They are also facing challenges in obtaining new foreign loans due to outstanding loan amounts and reduced confidence from foreign institutions.
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The current economic situation, including restrictions on imports and a dollar crisis, also led businesses to reduce their activities.
However, according to the latest data of Bangladesh Bank, at the end of the July to September quarter of the 2023-24 financial year, Bangladesh's total (public and private) foreign debt decreased to $96.54 billion. At the end of the previous quarter April to June, the amount of external debt was $98.10 billion. The country's foreign debt decreased by $1.55 billion in September compared to June.
