Bangladesh’s foreign debt rises 125pc in 10 years: World Bank
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
THURSDAY, MAY 26, 2022
THURSDAY, MAY 26, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Bangladesh’s foreign debt rises 125pc in 10 years: World Bank

Economy

Mohammad Ali
13 October, 2020, 12:30 pm
Last modified: 13 October, 2020, 11:13 pm

Related News

  • Truck-human hauler collision in Sirajganj leaves 5 dead
  • How big dreams and smart investment made Pacific Jeans a denim exporting giant 
  • Bangladesh, South Korea ink MoU on cooperation for peaceful nuclear energy use
  • EU to help Bangladesh combat human trafficking: Envoy  
  • UK reaffirms commitment to support Bangladesh’s private sector growth

Bangladesh’s foreign debt rises 125pc in 10 years: World Bank

Bangladesh's total external debt stock was $25.3 billion in 2009 which rose to $57 billion in 2019, an increase of 125 percent

Mohammad Ali
13 October, 2020, 12:30 pm
Last modified: 13 October, 2020, 11:13 pm

The country's total foreign debt has more than doubled in a decade and reached $57 billion in 2019, a World Bank report said.

According to the report, Bangladesh's total external debt stock was $25.3 billion in 2009 which rose to $57 billion in 2019, an increase of 125 percent.

The report titled "International Debt Statistics 2021", published on Monday, said that Bangladesh's long term debt increased to $45.93 billion at the end of 2019 up from $41.56 billion recorded in 2018.

According to the report, $41 billion of this total debt was acquired by the public sector.

Meanwhile, short-term external debt stocks rose marginally by 7.8 percent to reach $9.73 billion at end of 2019.

Bangladesh's long term disbursements fell to $9.18 billion from $9.7 billion in 2018, with $6.06 billion constituted by the public sector, showed in the report.

Bangladesh's long term interest payments increased by 31.8 percent to reach $639 million at the end of 2019, of which the public sector alone paid $487 million.

External debt stocks to exports increased by 10 percentage points from 2018 and stood 127 percent at the end of 2019. It was 149 percent a decade ago.

Foreign debt stocks to gross national income (GNI) were the same as 18 percent in the last three years. Debt service to exports reached 13 percent in 2019 from six percent in 2018.

In contrast, foreign direct investment (FDI) inflows rose 10 percent to $1.4 billion, mostly into the garment industry, said the report.

In South Asia, FDI inflows raised by 11 percent which was driven by India where additional relaxation of investment barriers in mid-2019, including in retail and insurance, boosted FDI by 10 percent in 2019 to $43 billion, directed largely at the technology and communication industry.

Pakistan rebounded to $2 billion, up to one-third compared with 2018 FDI inflows.

External debt stocks of the country reached $8 trillion at the end of 2019, with the pace of debt accumulation as in 2018.

China alone accounted for 26 percent of the 2019 external debt stock of low and middle-income countries and heavily influenced outcomes.

Neighbouring India drove the six percent rise in debt stocks in the South Asian region, but the increase was mirrored in the 9.5 percent rise in the external debt stock of Bangladesh.

India's external debt saw a 7.5 percent rise in 2019 to $560 billion from $521 billion at the end of 2018.

According to the latest data, total external debt stocks of low-income countries eligible for the DSSI (Debt Service Suspension Initiative) rose nine percent in 2019 to $744 billion, equivalent on average to one-third of their combined gross national income.

Lending from private creditors was the fastest-growing component of the external debt of DSSI eligible borrowers, up fivefold since 2010. Obligations to private creditors totalled $102 billion at the end of 2019.

"The Covid-19 pandemic has ended a two-decade streak of steady global progress in poverty reduction, pushing up to 150 million people into extreme poverty by 2021," said David Malpass, president of the World Bank.

"In 2019, the World Bank shows that almost half of all low-income countries were either already in debt distress or at a high risk of it," he added.

Bangladesh / Top News

World Bank / Bangladesh / foreign debt / rise

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • VAT on locally-made mobile phones, fridges on cards
    VAT on locally-made mobile phones, fridges on cards
  • Wheat stock at 3-year low and that may not be good for rice
    Wheat stock at 3-year low and that may not be good for rice
  • Ousted Pakistani Prime Minister Imran Khan gestures as he travels on a vehicle to lead a protest march in Islamabad, Pakistan May 26, 2022. REUTERS/Akhtar Soomro
    Azadi March: Imran gives 6-day ultimatum to announce polls

MOST VIEWED

  • Representational image. Picture: Pixabay
    Govt raises regulatory duty to discourage imports of 130 products
  • Representational Image. Photo: Mumit M/TBS
    Govt to list products to suspend imports amid dollar crisis
  • BPC hunts for dollar to import fuel oil
    BPC hunts for dollar to import fuel oil
  • British International Investment (BII) CEO Nick O’Donohoe. Illustration: TBS
    BII to invest $450m in Bangladesh in 5 years
  • Bangladesh may face debt distress from 2032: Economic Association  
    Bangladesh may face debt distress from 2032: Economic Association  
  • Inflation jumps to 6.29% in April
    Inflation jumps to 6.29% in April

Related News

  • Truck-human hauler collision in Sirajganj leaves 5 dead
  • How big dreams and smart investment made Pacific Jeans a denim exporting giant 
  • Bangladesh, South Korea ink MoU on cooperation for peaceful nuclear energy use
  • EU to help Bangladesh combat human trafficking: Envoy  
  • UK reaffirms commitment to support Bangladesh’s private sector growth

Features

Illustration: TBS

Should Belayets be allowed to return to school at 55?

25m | Pursuit
Impact Hub Dhaka is designed to cater to connectivity, offering lots of communal areas where you can chat over coffee, watch a webinar as a group or even host events. Photo: Courtesy

Inside Impact Hub: The surprising benefits of working in a co-working space

1h | Pursuit
Pacific Jeans uses sustainable technology in washing and finishing, and now has the facility to wash with zero water. Photo: Courtesy

How big dreams and smart investment made Pacific Jeans a denim exporting giant 

2h | Panorama
Psycure has received various awards for their extraordinary contributions to promoting Sustainable Development Goals. Photo: Courtesy

Psycure: Meet the organisation serving the underserved university students (and beyond) with mental healthcare 

1d | Panorama

More Videos from TBS

Why is Thanda Garam's juice so popular?

Why is Thanda Garam's juice so popular?

25m | Videos
Tea tales at TSC

Tea tales at TSC

1h | Videos
What journalism students want to know

What journalism students want to know

2h | Videos
Where the people have more weapons than military

Where the people have more weapons than military

13h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

3
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

4
Photo: Courtesy
Panorama

Misfit Technologies: A Singaporean startup rooted firmly in Bangladesh

5
Illustration: TBS
Banking

Let taka slide

6
Photo: Collected
Industry

Spanish recycled cotton producer opens new facility in Bangladesh

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab