Bangladesh’s Foreign Loans Surge to Record USD 7.27 Billion in FY 2019-20 Amidst COVID-19 Pandemic

The Government of Bangladesh has received a record USD 1.98 billion in foreign loans in June 2020, with a total of USD 7.27 billion received from donor countries and agencies in the fiscal year ending June 2020 (FY 2019-20), reflecting 17.2% year-on-year growth. Over half the amount, or USD 3.76 billion in foreign loans was received in the last four months of FY 2019-20 following the first detected cases of COVID-19 in the country, according to local media reports.

According to Finance Minister AHM Mustafa Kamal, the Government applied for loan assistance in tandem with implementation of domestic stimulus packages in order to mitigate the impact of the pandemic.

Ahsan H Mansur, Ex...