Bangladesh receives record foreign aid in outgoing fiscal year
$8.42 billion inflow in 11 months breaks record despite headwinds
FHM HUMAYAN KABIR |
Jun 24, 2022 8:39:14 a.m.
Jun 24, 2022 8:58:43 a.m.
Bangladesh received a record $8.42 billion in foreign aid in the 11 months of the current fiscal year, 47% more than the previous corresponding period, despite the global currency crisis.
Officials unveiled the eleven-month figure for the 2021-22 fiscal year on Thursday with a comparative advantage over the last fiscal year 2021 when the country’s foreign development partners disbursed $5.72 billion in medium and long-term aid. term (MLT) during the July-May period.
Development donors disbursed the highest amount of concessional loans and grants during the period, while three main ones – the Asian Development Bank (AfDB), Japan and the World Bank (WB) – have released a significant amount, officials from the Economic Relations Division (ERD) said. .
In the 12 months of last fiscal year, the partners released $7.96 billion, while $7.38 billion in the previous fiscal year 2020 and $6.54 billion in fiscal year 2019 , according to data from the ERD.
Of the $8.42 billion in aid obtained during the July-May period of this fiscal year, the AfDB alone released $2.08 billion, the Japan International Cooperation Agency (JICA)1, $78 billion and the World Bank $1.54 billion.
Additionally, Russia has disbursed $1.15 billion in aid and China $797 million in the 11 months to May 2022.
Financiers also confirmed a significant amount of MLT loans and grants during the period by signing agreements worth $5.91 billion in aid.
A senior ERD official said: “The disbursement of aid could reach the $10 billion mark at the end of this financial year as it is possible that higher amounts will be released in the last month of the year. exercise, June.”
According to the ERD official, the government had received $1.13 billion in budget support through May.
Development partners disbursed $8.22 billion in loans and $188.54 million in grants during the July-May period out of a total disbursed amount of $8.42 billion, according to data from the DRE.
Of the $5.91 billion in aid commitments, development partners confirmed $5.71 billion in concessional loans and $195.40 million in grants over the 11 months.
Bangladesh’s debt service had also ballooned in the July-May period as the country spent $1.88 billion on loan repayments, amid much talk of the country’s foreign reserves, rising debt service obligations and the current account deficit with expenditure exceeding income.
Of the debt service amount, $1.42 billion was paid in principal and $468.36 million in interest on outstanding loans through May.