Bangladesh’s debt miracle: $665 million cleared in months
From $665 million to zero in eight months, post-Hasina administration praised for restoring energy sector credibility
DHAKA, Bangladesh (MNTV) — In a rare fiscal turnaround, Bangladesh has nearly wiped out its outstanding liquefied natural gas (LNG) import debts — slashing dues from $665 million last August to just $10 million this week — under the leadership of the country’s interim government.
Petrobangla, the state-run oil and gas company, confirmed the final $10 million owed to Oman Trading International would be paid by Wednesday, effectively bringing Bangladesh’s LNG import arrears to zero.
According to a breakdown shared by Petrobangla, Chevron was owed $237 million, and long-term suppliers QatarEnergy and Oman Trading a combined $317 million as of August 2024 — all of which has now been cleared.
Spot market payments, once delayed by months, are also up to date.
The achievement stands in contrast to the previous administration under Sheikh Hasina, during which import bills piled up amid a severe foreign currency crunch.
Suppliers charged steep premiums, anticipating delayed payments.
“This required nothing but management,” energy adviser Muhammad Fouzul Kabir Khan told The Business Standard, an English-language business daily in Bangladesh.
“We cut unnecessary projects, ended wasteful bonuses, and enforced financial discipline.”
To secure foreign currency, the interim government offered sovereign guarantees to banks handling Petrobangla’s payments and relaxed central bank restrictions — allowing banks to bid more competitively for dollars and attract higher remittance inflows.
The strategy worked. From August to October alone, Bangladesh received over $7 billion in remittances, with nearly 30% flowing into state-run banks — a major boost to foreign exchange liquidity.
The interim government’s swift action has not only avoided late-payment penalties but also helped rebuild trust with global energy suppliers.
“For months, we were viewed as high-risk,” said a Janata Bank official involved in the payments.
“Now, we’re back on stable ground.”
Analysts say the success reflects what a technocratic administration can achieve when freed from entrenched political interests.
While long-term energy challenges remain, Bangladesh’s repayment feat — achieved quietly and without foreign bailouts — is already being cited as a rare success story in fiscal recovery under political transition.
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