According to central bank statistics, Bangladesh’s per-capita foreign debt swelled to $460 or Tk 39,000 in the fiscal year 2021, increasing by $67 from a year before.
The Bangladesh Bank in its latest publication shows that the country’s total external debt stock stood at $78.04 billion at the end of last June, or up by nearly 19 per cent in the fiscal 2021. This is equivalent to 22 per cent of the country’s GDP.
Of the total stock of the external debt at $78.04 billion, some $64 billion accounts for long-term borrowing while $14 billion for short terms.
The short-term debts increased by 18 per cent in the past fiscal year against 15 per cent previously while the long-term debt rate declined by 2.0 per cent to 82 per cent in 2020-21.
Private-sector external debts were also ballooned up. The public-sector debts stood at $59.3 billion at the end of June while the private sector’s at $18.7 billion. Meanwhile, The external borrowings are much cheaper than the local sources.
Country’s multilateral and bilateral debt serving usually stands at 1 per cent. Government now avails credits to make up for budget deficits.
Source: The Financial Express