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Bangladesh’s foreign debt more than triples in 10 years

Bilal9

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Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22​


The total foreign debt held by Bangladesh rose 238% to $91.43 billion in 2021 from $27.05 billion in 2011, a World Bank report says.

Neighbouring India's external debt saw an 83% rise during the period, while Pakistan saw a 101% rise, and Sri Lanka 119%, adds the report titled "International Debt Report 2022" published on Tuesday.

Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22.




Infographic: TBS
Infographic: TBS

Infographic: TBS

According to the World Bank report, Bangladesh's total external debt stocks were $73.50 billion in 2020.

The report says the long-term external debt of the country reached $70.04 billion in 2021, up from $60.41 billion a year ago. Of the amount, $62.4 billion was acquired by the public sector.

IMF credit and SDR allocation amounted to $3.30 billion in 2021, compared to $2.11 billion in 2020.

Meanwhile, short-term external debt rose 65% to $18.09 billion at the end of 2021 from $10.99 billion in the previous year.

Bangladesh's long-term disbursement rose to $13.78 billion in 2021 from $10.21 billion in 2020, with $9.36 billion constituted by the public sector, shows the World Bank report, adding that the country's long-term principal payments increased 47% year-on-year to reach $4.2 billion in 2021 and interest payments increased 26% to $1.08 billion.

Out of $1.08 billion in long-term interest payments, the public sector alone paid $985.4 million.

The external debt-to-export ratio of the country had risen 51.7 percentage points to 190% in 2020 and declined to 183.5% in the following year. The external debt-to-export ratio is generally used for determining a particular country's debt load.


Debt interest payments by poorest countries rise 35%

Debt-service payments by the world's poorest countries on their public and publicly guaranteed debts are projected to rise by 35% to more than $62 billion this year to cover the extra cost of the Covid-19 pandemic and a dramatic rise in food import costs.

The World Bank is concerned that debt-service payments take away already scarce fiscal resources from health, education, social assistance, and infrastructure investment.

The global lender said payments scheduled for 2023 and 2024 are likely to remain elevated because of high-interest rates, maturing principal, and the compounding of interest on Debt Service Suspension Initiative deferrals.

The debt crisis the developing countries are facing has intensified, said World Bank President David Malpass, adding, "A comprehensive approach is needed to reduce debt, increase transparency, and facilitate swifter restructuring – so countries can focus on spending that supports growth and reduces poverty.

"Without it, many countries and their governments face a fiscal crisis and political instability, with millions of people falling into poverty."

At the end of 2021, the debt stock of low- and middle-income countries rose 5.6% to $9 trillion, of which International Development Association (IDA) countries owe nearly $1 trillion.
 

bluesky

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Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22
Please note that $95.86 billion is the total of borrowing that has matured. Many more billions of dollars will get matured in the next few years. So, the matured borrowing will shortly rise making the repayment very difficult.

Repayment for this FY that ends in June '23 amounts to about $2.75 billion. However, ministers want $2.5 billion of additional food imports from India. Very strange.
 
May 13, 2022
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Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22​


The total foreign debt held by Bangladesh rose 238% to $91.43 billion in 2021 from $27.05 billion in 2011, a World Bank report says.

Neighbouring India's external debt saw an 83% rise during the period, while Pakistan saw a 101% rise, and Sri Lanka 119%, adds the report titled "International Debt Report 2022" published on Tuesday.

Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22.




Infographic: TBS
Infographic: TBS

Infographic: TBS

According to the World Bank report, Bangladesh's total external debt stocks were $73.50 billion in 2020.

The report says the long-term external debt of the country reached $70.04 billion in 2021, up from $60.41 billion a year ago. Of the amount, $62.4 billion was acquired by the public sector.

IMF credit and SDR allocation amounted to $3.30 billion in 2021, compared to $2.11 billion in 2020.

Meanwhile, short-term external debt rose 65% to $18.09 billion at the end of 2021 from $10.99 billion in the previous year.

Bangladesh's long-term disbursement rose to $13.78 billion in 2021 from $10.21 billion in 2020, with $9.36 billion constituted by the public sector, shows the World Bank report, adding that the country's long-term principal payments increased 47% year-on-year to reach $4.2 billion in 2021 and interest payments increased 26% to $1.08 billion.

Out of $1.08 billion in long-term interest payments, the public sector alone paid $985.4 million.

The external debt-to-export ratio of the country had risen 51.7 percentage points to 190% in 2020 and declined to 183.5% in the following year. The external debt-to-export ratio is generally used for determining a particular country's debt load.


Debt interest payments by poorest countries rise 35%

Debt-service payments by the world's poorest countries on their public and publicly guaranteed debts are projected to rise by 35% to more than $62 billion this year to cover the extra cost of the Covid-19 pandemic and a dramatic rise in food import costs.

The World Bank is concerned that debt-service payments take away already scarce fiscal resources from health, education, social assistance, and infrastructure investment.

The global lender said payments scheduled for 2023 and 2024 are likely to remain elevated because of high-interest rates, maturing principal, and the compounding of interest on Debt Service Suspension Initiative deferrals.

The debt crisis the developing countries are facing has intensified, said World Bank President David Malpass, adding, "A comprehensive approach is needed to reduce debt, increase transparency, and facilitate swifter restructuring – so countries can focus on spending that supports growth and reduces poverty.

"Without it, many countries and their governments face a fiscal crisis and political instability, with millions of people falling into poverty."

At the end of 2021, the debt stock of low- and middle-income countries rose 5.6% to $9 trillion, of which International Development Association (IDA) countries owe nearly $1 trillion.

Bangladesh economy has also grown significantly you imbecile!

Total debt is meaningless figure.

It is the debt to GDP ratio that matters.

And then you wonder why I despise Dhakaya “academics” so much!!

@UKBengali
@EasyNow
 

EasyNow

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1670532973878.png


Bangladesh GDP in last 10 years


 

bluesky

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View attachment 904207

Bangladesh GDP in last 10 years



BAL GDP remains on paper. Please see the real GDP in the pictures below.
1670535147334.png

1670535216859.png

1670535240574.png


1670535259248.png

1670535276677.png
 
May 13, 2022
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So at 2600 dollars per capita you vanish slums, floods and poverty 🤣🤣🤣🤣

Something even the US with humongous GDP hasn’t managed.

And you want people to take you seriously?

What a 24 carrot plonker you are 🤣😂😂😂😂

@UKBengali
@EasyNow

Btw, I am sure some of those pics are from India 🤣🤣🤣
 

bluesky

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Sustainable economic development can only be achieved through rapid industrialization of the country and not by building a few construction projects with borrowed foreign money.

The next govt should stop following Hasinanomics and reverse this process of depending on foreign money for every tiny thing.
 

hydrabadi_arab

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Bangladesh economy has also grown significantly you imbecile!

Total debt is meaningless figure.

It is the debt to GDP ratio that matters.

And then you wonder why I despise Dhakaya “academics” so much!!

@UKBengali
@EasyNow

GDP in Taka and then converted to $ is worth shit as we have learned from Sri Lanka and Pakistan experience. BD have good foreign reserves but they are going down. The currency is artificially kept at certain rate which have bad consequences in the long run.
 

Species

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GDP in Taka and then converted to $ is worth shit as we have learned from Sri Lanka and Pakistan experience. BD have good foreign reserves but they are going down. The currency is artificially kept at certain rate which have bad consequences in the long run.

That's exactly what I thought, bringing GDP may sound cool to defend the government but debts must be paid with dollars.

What we need to look at is FDI flow, which has remained more or less the same in these 10 years.

bangladesh-foreign-direct-investment.png


While trade deficit, has widened,

global-market.jpg
 

bluesky

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GDP in Taka and then converted to $ is worth shit as we have learned from Sri Lanka and Pakistan experience. BD have good foreign reserves but they are going down. The currency is artificially kept at certain rate which have bad consequences in the long run.
BD has $26 billion worth of FE reserve. Do you think it is enough?
 
Last edited:
May 13, 2022
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That's exactly what I thought, bringing GDP may sound cool to defend the government but debts must be paid with dollars.

What we need to look at is FDI flow, which has remained more or less the same in these 10 years.

bangladesh-foreign-direct-investment.png


While trade deficit, has widened,

global-market.jpg

You don’t pay national debt with FDI, genius 🤣🤣🤣🤣

You pay it with your dollar income - which comes from remittance, exports and repatriation of profits made abroad.

@UKBengali another economic genius here. Internet makes every imbecile an expert and YouTuber 🤣😂😂
 

bluesky

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You don’t pay national debt with FDI, genius 🤣🤣🤣🤣

You pay it with your dollar income - which comes from remittance, exports and repatriation of profits made abroad.

@UKBengali another economic genius here. Internet makes every imbecile an expert and YouTuber 🤣😂😂
Now, Boltu Mia, tell us how your Hasina Bibi will pay the $2.75 billion of loans and interest this fiscal. Note also that another BAL Boltu minister is talking of importing $2,5 billion worth of foodstuff from India.

Hasina Bibi should fund these payments from the money she has stolen. It is about $20 billion that she looted.
 

Destranator

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Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22​


The total foreign debt held by Bangladesh rose 238% to $91.43 billion in 2021 from $27.05 billion in 2011, a World Bank report says.

Neighbouring India's external debt saw an 83% rise during the period, while Pakistan saw a 101% rise, and Sri Lanka 119%, adds the report titled "International Debt Report 2022" published on Tuesday.

Meanwhile, data obtained from the Bangladesh Bank shows the total external debt of the country climbed to $95.86 billion at the end of fiscal 2021-22.




Infographic: TBS
Infographic: TBS

Infographic: TBS

According to the World Bank report, Bangladesh's total external debt stocks were $73.50 billion in 2020.

The report says the long-term external debt of the country reached $70.04 billion in 2021, up from $60.41 billion a year ago. Of the amount, $62.4 billion was acquired by the public sector.

IMF credit and SDR allocation amounted to $3.30 billion in 2021, compared to $2.11 billion in 2020.

Meanwhile, short-term external debt rose 65% to $18.09 billion at the end of 2021 from $10.99 billion in the previous year.

Bangladesh's long-term disbursement rose to $13.78 billion in 2021 from $10.21 billion in 2020, with $9.36 billion constituted by the public sector, shows the World Bank report, adding that the country's long-term principal payments increased 47% year-on-year to reach $4.2 billion in 2021 and interest payments increased 26% to $1.08 billion.

Out of $1.08 billion in long-term interest payments, the public sector alone paid $985.4 million.

The external debt-to-export ratio of the country had risen 51.7 percentage points to 190% in 2020 and declined to 183.5% in the following year. The external debt-to-export ratio is generally used for determining a particular country's debt load.


Debt interest payments by poorest countries rise 35%

Debt-service payments by the world's poorest countries on their public and publicly guaranteed debts are projected to rise by 35% to more than $62 billion this year to cover the extra cost of the Covid-19 pandemic and a dramatic rise in food import costs.

The World Bank is concerned that debt-service payments take away already scarce fiscal resources from health, education, social assistance, and infrastructure investment.

The global lender said payments scheduled for 2023 and 2024 are likely to remain elevated because of high-interest rates, maturing principal, and the compounding of interest on Debt Service Suspension Initiative deferrals.

The debt crisis the developing countries are facing has intensified, said World Bank President David Malpass, adding, "A comprehensive approach is needed to reduce debt, increase transparency, and facilitate swifter restructuring – so countries can focus on spending that supports growth and reduces poverty.

"Without it, many countries and their governments face a fiscal crisis and political instability, with millions of people falling into poverty."

At the end of 2021, the debt stock of low- and middle-income countries rose 5.6% to $9 trillion, of which International Development Association (IDA) countries owe nearly $1 trillion.
Forex reserves have also multiplied meaning capacity to absorb shocks have also increased.
I believe the current dip in forex reserves is temporary due to global economic challenges.
The government must undertake reforms to increase tax revenue which would inevitably reduce dependency on foreign loans.
 

UKBengali

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That's exactly what I thought, bringing GDP may sound cool to defend the government but debts must be paid with dollars.

What we need to look at is FDI flow, which has remained more or less the same in these 10 years.

bangladesh-foreign-direct-investment.png


While trade deficit, has widened,

global-market.jpg
You don’t pay national debt with FDI, genius 🤣🤣🤣🤣

You pay it with your dollar income - which comes from remittance, exports and repatriation of profits made abroad.

@UKBengali another economic genius here. Internet makes every imbecile an expert and YouTuber 🤣😂😂


He forgot to mention that increased remittances more than makes up for the increased trade deficit.

Lots of countries in the world have trade deficits for decades on end and they function fine.

BD is making more stuff at home and so we should gradually see a reduction in the trade deficit as percentage of GDP over the coming decades.
 

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