Bangladesh’s foreign debt servicing surged nearly 26% to $3.36 billion in the fiscal year ending 30 June 2024, according to the latest report from the Economic Relations Division (ERD) published today.

This increase is bolstered by a record 44% rise in interest payments, which reached nearly $1.35 billion, driven by a significant rise in borrowing costs.

Principal repayments are rising as the grace periods for loans taken for various mega projects end. Additionally, high interest rates…