Debt services increase 12pc in FY 2016-17

Bangladesh paid Tk 9,218.93 crore (USD 1,144.36) towards debt servicing in FY 2016–17, which was 12 per cent higher compared to the previous fiscal year and 0.5 per cent of the total GDP.

In the previous fiscal year, the country made debt repayments amounting to Tk 8,236.49 crore, which is equivalent to USD 1,050.57 million.

According to the Foreign Aid Budget Account (FABA) of the Economic Relations Division (ERD), USD 913.33 million, out of the total repayment, was towards the principal amount and USD 231.02 million was paid by the way of interest.

In the previous year, USD 848.48 million was paid towards the principal sum and USD 202.10 million as interest.

In the last fiscal year, Bangladesh received USD 3,396.12 million from different development partners, which was 5 per cent lower than the previous fiscal year. Different development partners disbursed USD 3,563.59 million in FY 2015–16, which was highest ever disbursement since the country's independence. Of the total foreign aid USD 3064.45 million in credit in last fiscal and $331.67 million in grant.

FABA data shows that the grant was reduced and the credit increased in the last fiscal year compared to the previous year. The data also shows that the government had received a commitment of USD 17.88 billion from different partners, the highest sum till date.

Of the total commitment, only USD 363.49 million was in the form of grants, while the rest was promised as credit.

Talking to The Independent, Dr ABM Mirza Azizul, former adviser to the caretaker government, said that it would not create any problem in the near future. He, however, felt that it could create a burden once the buyer’s credit, which has a short grace period and carry high interest rates, increased substantially.

The government must be cautious about taking the buyer’s credit, he added.

Debt services increase 12pc in FY 2016-17

Bangladesh paid Tk 9,218.93 crore (USD 1,144.36) towards debt servicing in FY 201617, which was 12 per cent higher compared to the previous fiscal year and 0.5 per cent of the total GDP. In the previous fiscal year, the country made debt repayments amounting to Tk 8,236.49 crore, which is equivalent to USD 1,050.57 million. According to the Foreign Aid Budget Account (FABA) of the Economic Relations Division (ERD), USD 913.33 million, out of the total repayment, was towards the principal amount and USD 231.02 million was paid by the way of interest. In the previous year, USD 848.48 million was paid towards the principal sum and USD 202.10 million as interest. In the last fiscal year, Bangladesh received USD 3,396.12 million from different development partners, which was 5 per cent lower than the previous fiscal year. Different development partners disbursed USD 3,563.59 million in FY 201516, which was highest ever disbursement since the countrys independence. Of the total foreign aid USD 3064.45 million in credit in last fiscal and $331.67 million in grant. FABA data shows that the grant was reduced and the credit increased in the last fiscal year compared to the previous year. The data also shows that the government had received a commitment of USD 17.88 billion from different partners, the highest sum till date. Of the total commitment, only USD 363.49 million was in the form of grants, while the rest was promised as credit. Talking to The Independent, Dr ABM Mirza Azizul, former adviser to the caretaker government, said that it would not create any problem in the near future. He, however, felt that it could create a burden once the buyers credit, which has a short grace period and carry high interest rates, increased substantially. The government must be cautious about taking the buyers credit, he added.