Due to the devaluation of the rupee against the dollar, the foreign debt has increased by more than 3500 crore rupees in a single day. Compared to December 2022, foreign debt increased by 4.2 billion dollars last March. Before the devaluation of the rupee last Thursday, the value of the dollar was 46 thousand 200 crores as the price of the dollar was 110 taka. Debt has increased to 49 thousand 560 crores as of 118 rupees from Thursday. Due to the devaluation of rupees, the debt has increased by 3 thousand 360 crores during the discussion period. Along with this, the interest rate in the international market increases and the additional money has to be paid about 200 crores. If you add the interest money, the total amount is more than 3.5 thousand crore rupees.

According to sources, the entrepreneur conducts business activities by taking loans in foreign currency and converting it into local currency. Local currency has to be converted into foreign currency while repaying the loan. At that time, foreign currency has to be bought at the prevailing dollar price in the market. Due to this, if the price of the dollar increases, the foreign debt increases in terms of rupees. Among these, if the interest rate increases in the international market, the loan amount also increases. Because at the time of repayment of the loan, the prevailing exchange rate and interest rate are the conditions for repayment of the loan. If there is more short-term debt among them, the risk of debt increases more. Short-term loans are high in the private sector in Bangladesh. Due to this, the debt repayment pressure is also high. In this, the country’s foreign exchange reserves are on the downward trend. At the same time, the price of the dollar is increasing. At present the net reserve is 1848 million dollars. In August 2021, it rose to the highest gross reserve of $46.08 billion.

According to the Central Banker report, the total foreign debt in December 2022 was 9,652 million dollars. At that time the price of dollar was 103 rupees. The loan amount was 9 lakh 94 thousand 156 crores. Last December, the amount of debt increased to 10,640 million dollars. At that time the price of dollar was 110 rupees. In this, the loan amount stands at 11 lakh 7 thousand crores. Debt increased by 4.12 billion dollars during the discussion period. Last March, it further increased the debt status to 10,720 million dollars. As a result, the debt increased by 4.2 billion dollars from January to March 2023. The highest price of the dollar was Tk 110 from last December till Wednesday. According to this, the debt has increased by 46 thousand 200 crores. From Thursday, the price of the dollar increased to 118 rupees. The debt increased to 49 thousand 560 crores in one day. Due to the increase in dollar value, the amount of loan has increased by 3 thousand 360 crore rupees.

Meanwhile, the interest rate of loans in the international market has also increased. Before Corona, the average interest rate for six-month Treasury bills in dollars at the London Interbank Offer Rate (Libor) was 1.5 to 2 percent. With this, 2.5 to 3 percent was added to the loan interest. According to this, the interest rate was 4 to 5 percent. At present, the Libor rate has increased to 5.71 percent in dollars and the US secured overnight finance rate (SOFOR) has risen to 5.38 percent. If you add two and a half percent to this, the interest rate stands at 8.21 percent in dollars. Adding three percent makes the interest rate even higher. As a result, the loan interest rate is increasing. Due to this, the debt situation is increasing. Apart from this, as a result of increasing the loan repayment period, additional interest has to be paid as well as penalty interest. In case of failure to pay the installments of the loan in the international arena, high interest along with penalty interest has to be paid against it.

Last year, interest payments on short-term loans were $93 million. 10 thousand 130 crore as dollar price is 110 taka. 113 million dollars to be paid this year. Of this, $500 million has already been paid. Another 63 million dollars will have to be paid. As of now, the price of dollar is 110 rupees as 6930 million rupees. 7434 crores as Rs.118. 504 crores to be paid more.

Since the time of Corona, due to the business slowdown, the repayment period of loan installments has been extended in stages. As a result, the amount of debt has also increased. Despite the increase in loan repayments, the debt status has now increased again, although it decreased slightly in March last year.

In December 2022, the external debt of the public sector was 7 thousand 221 billion dollars. Last March it increased to 7981 million dollars. 7.6 billion dollars increased. As the dollar price is 110 taka, the loan amount is 83 thousand 600 crore taka. As of 118 taka, its amount has increased to 89 thousand 680 crore taka. Due to the devaluation of the rupee, the debt in this sector is increasing by 6 thousand 80 crores.

Most of the public sector debt is long-term. Due to which they have a long repayment period. The level of risk is low. But short term loans are more in private sector. These are to be repaid within 3 to 6 months. Interest rate is also high. That is why the risk is high in them. Most of these loans are deferred. At the same time paying more.

The external debt position of the private sector was $2,431 crore as of December 2022. Last March it decreased to 2095 million dollars. Debt decreased by 336 million dollars during the period under discussion. As the dollar price is 110 taka, the debt has decreased to 36 thousand 960 crore taka. 118 has decreased to 39 thousand 648 crores. Due to the devaluation of the rupee, the level of debt reduction has increased by 2 thousand 688 crores.

Among the loans of the private sector, the loan of the import sector is the largest. In this, trade credit and foreign LC liabilities are increasing. Which is causing pressure on the country’s foreign exchange reserves.

Debt in other sectors was $11.42 billion in December 2022. Last March it further increased to 11.78 billion dollars. Debt increased by 36 million dollars. As the dollar price is 110 taka, the debt has increased to 3960 crore taka. 118 increased to Rs 4249 crore. Debt increased by Tk 288 crore due to devaluation of rupee.