Streak of Surprises Continues: Foreign Loan Drops by $740 Million in 3 Months

In the final quarter of 2024 (October to December), Bangladesh experienced a notable decline of $740 million in foreign loans, as revealed by a report from Bangladesh Bank. This drop primarily stemmed from a decrease in offshore banking activities by local banks, which resulted from stricter dollar limits and strained relations with several foreign banks. Loans taken by the public sector went down by $214 million, while the private sector witnessed a drop of $522 million—this includes a significant $496 million reduction in buyer’s credit. Although there was a decline during this specific quarter, the total foreign debt at the end of December reached $103.63 billion, reflecting a 3% increase compared to the same period a year earlier. Notably, under the Awami League government over the past 15 and a half years, Bangladesh has taken on nearly $84 billion in foreign loans.