Govt is grappling with a surge in debt servicing costs, impacting its dwindling foreign exchange reserves. In July 2023, the government repaid a record-high $253.09 million in debt, marking the largest debt servicing amount in the first month of the fiscal year 2023-2024. The repayments are expected to exceed $3.0 billion by the end of the fiscal year, primarily due to increased borrowing in recent years. Additionally, Bangladesh missed out on substantial foreign aid from development partners in the first month of the current fiscal year, exacerbating its foreign currency woes. To make matters worse, foreign assistance disbursements were 17% lower in July compared to the same month in the previous fiscal year. These challenges are straining the country’s foreign exchange reserves, which currently stand at around $23.56 billion, equivalent to four months of import cover.
Source for more details:
