DHAKA, Mar 27 (V7N) – Bangladesh’s total external debt reached a historic high of $113.51 billion at the end of the December 2025 quarter, according to the latest report released by Bangladesh Bank. This marks a significant $1.3 billion increase from the $112.21 billion recorded in the September quarter, reflecting a persistent upward trend in the nation's borrowing.

Debt Composition: Public vs. Private Sector

The central bank's data highlights a broad-based increase across both government and commercial sectors:

  • Public Sector Debt: Rose to $93.46 billion, accounting for approximately 82% of the total debt. This includes direct government borrowing of $80.94 billion and $12.52 billion by state-owned corporations and banks.

  • Private Sector Debt: Exceeded the $20 billion mark ($20.05 billion), reversing a three-quarter decline seen earlier in the year.

Key Drivers of the Increase

Financial analysts and central bank officials pointed to several technical and economic factors behind the $1.3 billion quarterly jump:

  • Offshore Banking Inflow: Approximately $400 million in foreign currency flowed into offshore banking units during the final quarter, which was added to the national debt total.

  • ACU Payment Deferrals: The non-payment or rescheduling of Asian Clearing Union (ACU) liabilities during the December quarter contributed to the higher outstanding balance.

  • Exchange Rate Shifts: The sharp depreciation of the Taka—moving from Tk 85 to Tk 123 per USD—has significantly inflated the debt burden when measured in local currency, which now stands at nearly Tk 14 trillion.

Growing Economic Pressure

While the majority of the debt (87.62%) remains long-term, the increasing debt-to-export ratio has prompted the International Monetary Fund (IMF) to reclassify Bangladesh’s debt risk from 'low' to 'moderate'.

To manage the ongoing dollar crisis, the interim government has secured additional budgetary support from multilateral partners like the World Bank and the IMF. However, with debt servicing costs crossing $4 billion in the current fiscal year, experts warn that the government must prioritize revenue mobilization to avoid a liquidity crunch.

END/SMA/AJ