At the end of 2022, the combined foreign debt of low and middle income countries in the world decreased, but Bangladesh increased. According to the World Bank, the combined debt of those countries has decreased by 3.4 percent during this period. However, the debt of Bangladesh increased by 6.59 percent. And in the last 12 years, Bangladesh’s foreign debt has increased by 265 percent.
The information is known in the recently published World Debt Report or Global Debt Report 2023 of the World Bank.
According to the report, the total foreign debt of Bangladesh in 2010 was 26.52 billion dollars. In 2018, which increased to 57.12 billion dollars. At the end of 2021, the debt was 91.47 billion dollars.
And at the end of 2022, the amount of foreign debt of Bangladesh was 97.012 billion dollars. Due to this, Bangladesh’s foreign debt has increased by more than 6.5 percent in one year. And after 2010, the debt has increased more than two and a half times in the last 12 years.
According to the World Bank, the foreign debt of Bangladesh has increased in 2022 despite the increase in the dollar exchange rate and the change in the pace of global investment. Although there is some concern about the country’s debt, the overall debt-GDP ratio is still below 40 percent.
However, there is no opportunity to earn foreign currency from the projects that are being financed by foreign loans. Along with the devaluation of money, the debt repayment cost of the government will increase. With this, economic analysts believe that if the revenue income does not increase at a proportional rate, there will be concerns about debt repayment.
The World Bank has identified a number of reasons for the decline in credit flows to lower-middle-income countries. The main reason has been identified as the withdrawal of investment from government and private bonds of these countries.