Bangladesh has received a sum of $287 million of foreign loans in July, the first month of the current fiscal year.
On the other hand, the country spent $385.67 million at the same time as interest and principal of the previous loans from foreign sources.
Debt service cost reached over 34% higher than the received amount, revealed the latest report of the Economic Relations Division (ERD) of the Ministry of Finance.
The provisional data of the ERD revealed that all of the development partners released $358.33 million as foreign aid including loans and grants in July, which was $405.79 million in July last year.
The disbursement of foreign aid reduced by $47.46 million or 11.70% compared with July last year.
The ERD released the July issue of the foreign assistance monthly report on Wednesday (28 August).
The officials of the ERD said that the disbursement of foreign aid reduced on July as the implementation of development projects hampered due to movements by students in last month.
The government paid $385.67 to serve foreign loan while $264.88 million as principal and $120.79 million as interest.
The government paid a sum of $253.09 million in July last year, represents an increase of 42%.
The report highlighted that the government paid TK4548 crore in terms of domestic currency to repay loans in July, which was Tk2752 crore in July last year.
Foreign debt service cost in term of Taka increase over 65.26%, highlighted the report.
