Foreign loan release drops in July-Nov

Staff Correspondent | Published: 00:06, Dec 29,2016

 
 

Disbursement of foreign loans and grants declined in the first five months of the current fiscal year to $903.18 million from that of $1,003.86 million in the same period of the last year, according to data of the Economic Relations Division of the finance ministry.
Commitment made by the international lenders and development partners for giving loans and grants to Bangladesh, however, increased by around 14 times in July-November period of the current FY 2016-2017 mainly due to Russia’s loan commitment for Rooppur Nuclear Power Plant.
Bangladesh got a commitment of getting $13.42 billion from the lenders and partners in the period against the commitment of $ 972 million in the same period of the last FY of 2015-2016.
In July, Bangladesh and Russia signed a deal under which Russian government would lend $11.38 billion in supplier’s credit for the construction of Rooppur nuclear power plant.
This was not a regular commitment rather it was a special arrangement, officials of the ERD said.
According to the ERD data, of the released amount in July-November, $806.66 million was disbursed in loans while $96.52 million was in grants.
In the same period of last year, lenders and partners disbursed $ 842.74 million in loans and $ 161.12 million in grants.
The government July-November this year repaid $ 406.48 million in interest of loans and principal amount.
Of which, principal amount was $318.66 million and interest amount was $87.82 million.
In the same period last year it repaid $ 435.53 million in interest on loans and principal amounts.

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