Commitments made by the international lenders and development partners to give loans and grants to Bangladesh declined by around 89 per cent to $63.17 million in the first two month of the current fiscal year 2013-14 compared with that in the same period of the previous fiscal year, Economic Relations Division data showed. The data released on Thursday showed that international lenders had committed to disburse $579.61 million in loans and grants in July-August of the FY 2012-13.
Disbursement of foreign loans and grants also declined in the period while the amount of repayment as principals and interest on the previous years’ loans increased, the data showed.
In the first two months of the FY 2013-14, development partners and lenders disbursed $273.50 million in loans and grants, 16 per cent less than that in the corresponding period of the previous fiscal year when the country received $326.40 million.
Out of the $273.50 million, lenders disbursed $215.29 million in loans while donors provided $58.21 million as grants.
After repayment of interest and principals, net foreign loans stood at only $46.79 million, if grants are kept out, the data showed.
ERD officials said the loans and grants commitments would increase any time after signing one or two loan agreements with development partners.
Though in July-August of the last fiscal year the country received commitments of significant volume from lenders because of some loan agreements in the period, usually loan and grant commitments remain low at the beginning of a new fiscal year, they said.
According to the data, the government had to pay back $168.5 million in principals and interest on previous years’ loans.
Of the amount, the government repaid $128.84 million in principals while $42.69 million in interest on loans.
-With New Age input
