Bangladesh under $80 bn Debt

By June 2024, Bangladesh's external debt had surged to $103.78 billion, marking a staggering 341% increase from $23.5 billion in 2009 when the Awami League-led government took power. This growth reflects over $80 billion in new foreign loans, revealing a concerning overdependence on external financing to drive development. With these debts now amounting to approximately Tk1,245,000 crore, the devaluation of the local currency further exacerbates the financial burden. Following the resignation and departure of Prime Minister Sheikh Hasina in August, experts highlighted this unprecedented rise in foreign debt as a clear indication of financial mismanagement. Between June 2020 and June 2023 alone, foreign debt increased by 51%, jumping from $65.27 billion to $98.93 billion, pushing per capita debt to $604 by June 2024. With a debt-to-GDP ratio of 22.6%, much of this borrowing came from multilateral lenders and commercial banks, with $83.21 billion borrowed by the public sector, including $71 billion by the government itself. Additionally, the private sector's short-term foreign loans reached $20.57 billion, and buyers' credit for imports climbed to $5.76 billion by June 2024.