Corporate external borrowing continues to decline, with Bangladesh’s short-term overseas debt falling to $10.52 billion in October 2024 from $13.95 billion in May 2023, according to Bangladesh Bank. Analysts attribute this trend to domestic economic instability following the Sheikh Hasina government’s fall in August, the ongoing energy crisis, and currency depreciation. Despite stabilizing global interest rates, private-sector players are cautious, citing supply chain disruptions, industrial unrest, and uncertainties in governance and law and order. Major creditor nations include Singapore ($1.95 billion) and the UAE ($1.38 billion). Experts warn the trend reflects a challenging business climate, as entrepreneurs hold off on investments, impacting the economy’s growth and the private sector’s expansion.
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