In Bangladesh, interest payments on loans crossed 1 lakh crore for the first time in history

FY 24 in interest payments on loans taken by the Government of Bangladesh. 24.5% increase in 2023 these payments have crossed one lakh crore rupees for the first time in history.

It is the amount of interest paid on both domestic and foreign loans. According to the Bangladesh Finance Ministry’s financial report, more than Tk 114,000 crore was spent on interest payments in FY24, which is about 17 percent of the national budget, The Daily Star reported.

According to the report, the government has cut subsidies in the recent period to reduce the debt burden, even as it is unable to meet the revenue target set for a $4.7 billion loan program from the International Monetary Fund (IMF). I have failed.

Foreign remittance of profits on foreign investment increased 5 times

Initially, the government had earmarked ₹94,376 crore for interest payments in FY2024. However, in the revised budget, this amount increased to Tk 105,000 crore.

Interest payments on foreign debt in Bangladesh rose by 60.53 percent to Tk 15,150 crore last year, while interest payments on domestic debt rose by 20.48 percent to Tk 99,606 crore.

The total debt of the Bangladeshi government as of March 2024 was 1,697,415 crores, which is equivalent to 33.78% of the country’s GDP.