Bangladesh received about half of the $1.27 billion in foreign loan commitments in the first quarter of the 2026-27 financial year, according to provisional data released by the Economic Relations Division (ERD) yesterday.
Bilateral and multilateral lenders disbursed $662 million in July-September of the current fiscal year. This was 42 percent lower than the $1.14 billion received during the same period a year earlier.
ERD data showed that most lenders made no financing commitments during the period, except for the Islamic Development Bank (IsDB). Last month, the government signed a $1 billion financing agreement with the IsDB to modernise and expand Eastern Refinery Limited, the country’s only oil refinery.
Japan was the only other financier to commit funds, pledging $3.5 million during July-September. Including the IsDB commitment, total financing pledges increased during the period.
In terms of disbursements, the International Development Association (IDA), an arm of the World Bank Group, provided the highest amount at $196 million. The Asian Development Bank followed with $118 million, while India provided $105 million, according to the ERD.
Foreign financing inflows to Bangladesh, a least developed country that relies partly on foreign sources to meet its financing needs, declined for the third consecutive month.
Despite the fall in inflows, loan repayments rose 5.6 percent year on year to $1.35 billion in July-September of this fiscal year.
ERD data showed that Bangladesh received $8 billion in foreign financing in FY2025-26, down from $8.57 billion in the previous fiscal year. The country repaid $4.49 billion during the same period, nearly 11 percent more than a year earlier.