About Tk 39,000 cr foreign debt increased in a year

Mahfuaja Mukul: Foreign debt in the country has increased by $3.49 billion in the last one year. In the sum of Tk 38,940 crores. In June last year (2022), the total foreign debt position was $9,545 million. And in June of this year, it has increased to $9,894 million. During this period the amount continues to rise despite massive repayment of foreign debt. During the discussion period, long-term loans increased, short-term loans decreased.
These data were obtained from a research report of the central bank published on Sunday. The report was prepared on the basis of data till June last on foreign credit and investment.
According to the report, compared to June of last year (2022), the foreign debt status of the country has increased in June this year. Foreign direct investment or FDI coming into the country has decreased. And the investment status of Bangladeshi entrepreneurs abroad has also decreased slightly.
In June last year (2022), long-term debt was $7,480 million. And in June of this year, it has increased to $8,290 billion. In June last year (2022), short-term loans were $2,650 million. And in June of this year, it decreased to $1,603 million. In recent times this debt has further reduced.
According to sources, there has been a severe dollar crisis in the country for the past one and a half years. This crisis has been exacerbated by short-term foreign debt repayments. But overall short-term debt has decreased but now long-term debt has increased. As a result, the overall gross external debt position has increased, which may put further pressure on the dollar for repayment. However, the central bank believes that the flow of dollars in the market has increased. The deficits that were there earlier have now reduced.
Long-term debt repayments will not put additional pressure on the dollar.
From the report, it can be seen that despite the increase in foreign debt, the growth rate has decreased. In June 2021, total debt rose by more than 19 percent. In June last year, it decreased to 17 percent. In June this year, it further reduced the loan growth rate to 3.70 percent. Compared to June last year (2022), short-term debt has decreased by 22.30 percent and long-term debt has decreased by about 10.80 percent in June of this year. In June last year (2022), short-term loans increased by 47 percent and long-term loans by 11 percent.
The data of the report also shows that in the fiscal year 2021-22, FDI came to the country at $3.44 billion. $325 million came in the last financial year. FDI decreased by 5.52 percent during the period under discussion. Of the total FDI, only $800 million came as capital from abroad. The rest is reinvested from the profits of foreign companies operating in the country and loans from one company to another. FDI came as reinvestment from profits earned by foreign companies operating in the country to the tune of $237 million. Only $80 million came as loans from one company to another. In the last financial year, the highest net capital came from the United States of $260 million. All together came to $29 million. In the fiscal year 2021-22, US investment came to $620 million. Investments from the country have declined over the past year.
The investment status of Bangladeshi entrepreneurs abroad was $400 million in June last year, it has slightly decreased to $380 million in June this year. During the discussion period, the investment status of Bangladeshi entrepreneurs abroad decreased by $2 million.