Bangladesh’s per capita debt Tk95,019: BB

Bangladesh’s domestic and external debt stands at around Tk16.14 lakh crore, according to the latest report of Bangladesh Bank (BB).

As a result, the per capita debt of people stands at Tk95,019. But income is still higher than per capita debt. The current annual per capita income of the people of the country is $2793, which is around Tk3.3 lakh in Bangladeshi currency.

Though Bangladesh is still in a good position in terms of debt-GDP ratio compared to many countries in the world, a big portion of the national budget is spent on loan interest payments, Said economist Ahsan H Mansur, reports UNB.

Even if the income is higher; the risk of debt is now a headache due to lower revenue collection, and the supply chain disrupted by the impact of the Russia-Ukraine war and the trade deficit is reducing the government's debt repayment capacity, he said.

“Considering the debt-GDP ratio it is not risky yet, but the problem is a slow revenue collection and the lowest tax –GDP ratio of the country,” he told UNB.

Foreign exchange crisis, higher non-performing loans, global economic slowdown, and decreasing trend of inward remittances flow are the challenging matter to secure the debt repayment capacity, he added.