Bangladesh’s external debt-to-GDP ratio hits 21.8%

Bangladesh’s external debt to gross domestic product (GDP) ratio rose to 21.8% in 2021, according to updated statistics released by the central bank. The ratio was 19.5% in 2020. External debt to gross national income (GNI) reached 24.10% at the end of 2021, according to statistics; it was 21.5% in 2020.

The total stock of external debt reached $90.79 billion at the end of 2021, registering a growth of 24.50% compared to the same period of 2020.

Bangladesh’s external debt to gross domestic product (GDP) ratio rose to 21.8% in 2021, according to updated statistics released by the central bank. The ratio was 19.5% in 2020. External debt to gross national income (GNI) reached 24.10% at the end of 2021, according to statistics; it was 21.5% in 2020.

Of the total external debt, long-term debt was 80.10%, or $72.70 billion, while short-term debt was 19.90%, or $18.09 billion.

The semi-annual report, titled “Foreign Direct Investment and External Debt: July-December 2021”, shows that around 75% of total external debt is in the public sector, while the rest is in the private sector.

“For Bangladesh, external debt is one of the main financial sources of investment,” the report said. “Bangladesh’s external debt is the total debt the country owes to foreign creditors. Debtors can be central government, public enterprises, private sector enterprises of Bangladesh,” he said.

He also revealed that the ratio of foreign exchange reserves to total external debt fell to 50.8% last year from 59.2% in 2020, according to Bangladeshi media.

Moreover, Bangladesh’s per capita external debt rose to $536.24 last year from $435.31 in 2020.

According to the report, the country’s external debt includes money owed to private commercial banks, foreign governments or international financial institutions such as the International Monetary Fund and the World Bank.

Fibre2Fashion (DS) News Desk

Shirlene J. Manley