The borrowing trajectory and financial landscape of Bangladesh shifted dramatically between the period leading up to the major political unrest and riots of mid-2024 (which resulted in the ousting of Sheikh Hasina and the installation of the Muhammad Yunus-led interim government) and the economic environment today in late 2026.
Comparison of Bangladesh's Borrowing & Debt Profile
| Metric / Indicator | Before the 2024 Unrest (2023 – Early 2024) | Current Situation (Late 2026) |
|---|---|---|
| Total Outstanding External Debt | Hovered around $100 billion to $111 billion. | Slightly stabilized at roughly $111 billion, as aggressive debt repayments outpace new incoming loans. |
| Active IMF Bailout Requests | Secured a $4.7 billion IMF package in Jan 2023 (scaled to $5.5 billion later). | Actively seeking an additional $4.5 billion to $5 billion in what marks its 16th IMF bailout. |
| Banking Sector Default Loans | Non-performing loans (NPLs) were high but manageable under strict regulation. | Banking sector is in a severe crisis with BDT 6.07 lakh crore in default loans, making up 32.78% of all outstanding loans. |
| Currency Value (vs. USD) | Remained steady around 85–86 Taka per US dollar before macroeconomic shocks. | Weakened heavily by 44%, sitting at over 123 Taka per US dollar, drastically driving up the cost of imports. |
| GDP Growth & Inflation | Growth was strong (above 6-7%); inflation was rising but under double digits. | Economic growth has slowed down to 3.2%, while inflation averages a bruising 10.9%. |
Before the Unrest: Structural Vulnerabilities Deepen
Before the 2024 mass protests and riots, Bangladesh was structurally burdened but still performing well on several headline economic parameters.
- The First IMF Lifeline: Owing to a severe post-pandemic import surge and rising global commodity prices, foreign exchange reserves began dropping. The government took a $4.7 billion loan from the IMF in January 2023. However, the country only ended up drawing about 69% ($3.8 billion) of it because it struggled to meet strict IMF reform mandates. [1, 2]
- The Trade Deficit Engine: The country suffered from a heavily unidimensional export market (predominantly ready-made garments). Even with booming exports, massive bills for energy and food imports resulted in a structural trade deficit exceeding $20 billion. [2]
Now: High-Risk Stabilization and Domestic Credit Meltdown
Following the riots, factory shutdowns (including massive industrial areas like Gazipur), and governance shifts, the interim government faces compounding financial hurdles: [3, 4]
- Desperation for Liquidity: Bangladesh is back at the IMF negotiating table for a fresh $4.5 to $5 billion injection to stabilize its balance of payments. Lenders are pushing for steep economic medicine: raising the country’s chronically low tax-to-GDP ratio (currently at just 6.7–7%), slashing energy/food subsidies, and introducing proper user fees for public facilities. [1, 2]
- Domestic Banking Paralysis: The most stark change is the internal credit crisis. Due to past cronyism and post-riot institutional instability, default loans have skyrocketed to nearly a third of all total loans (BDT 6.07 lakh crore), heavily concentrated within the top ten largest banks. [5]
- Depleted Import Power: The combination of a 44% currency devaluation against the dollar and a massive trade gap (now sitting at $27 billion) means the government is paying significantly more to service existing foreign debts and import essential goods. [1, 2]
If you want to look closer at these economic impacts, I can provide:
A deep dive into the specific reforms the IMF is demanding for the current package.Data on how the garment export sector has fared since the factory disruptions.An explanation of how the domestic banking crisis affects everyday local businesses.
Let me know what area you'd like to explore next.
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