Despite pressure, foreign loan repayment not worrisome: FinMin
According to ERD’s projection, Bangladesh’s spending on foreign loan repayment will surge to $3.56 billion in FY24 from $2.67 billion a year ago
The government is under some pressure to pay back foreign loans but the situation is not grim yet, Finance Minister Abul Hassan Mahmood Ali said yesterday.
The foreign loans are being repaid, he said in response to a query from reporters during a press briefing at his office in the Sher-e-Bangla Nagar area of the capital following a meeting with a delegation from the International Organization for Migration (IOM).
According to Economic Relations Division (ERD) data, Bangladesh paid $2.67 billion in interest and principal on loans to various development partners in the fiscal 2022-23, compared to $2.01 billion in FY22.
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According to officials concerned, the amount of loan repayment has surged in the ongoing fiscal year as the grace periods for many loans have ended.
We want to see inflation go down. But some things do not progress quickly
Besides, interest payments have also increased due to the increase in interest rates on market-based loans.
According to an ERD's projection, Bangladesh will have to pay $3.56 billion in FY24.
Moreover, debt payments will increase to $4.21 billion and $4.72 billion in FY25 and FY26, respectively.
Responding to another question, the finance minister said there is some uneasiness about inflation. "We want to see inflation go down. But some things do not progress quickly."
He said the new government has made many decisions to improve the economic situation, but some are yet to be implemented.
Finance Minister Mahmood Ali returned home on 20 February after attending the annual conference of the International Fund for Agricultural Development (Ifad) in Italy.
Speaking about the conference, he said among the countries that receive assistance from Ifad, Bangladesh gets the most.
"So far, Bangladesh has received assistance of about $2 billion from the development agency. The amount of this assistance will increase in the future," he added.
Speaking about his meeting with the IOM delegation, the minister said the agency has pledged to continue to help Bangladesh in areas of migration, among other things.
