Foreign lenders disbursed over $7 billion in loans during the first eight months of the current fiscal year (8MFY21), higher by 12 per cent.
According to local media reports, China remained the largest creditor that gave $2.4 bn or over one-third of the total new loans, excluding a $1.5 bn trade finance facility. The $1.5 bn facility is not part of the federal government borrowing of $7 bn and is booked on the balance sheet of the central bank.
According to the Ministry of Economic Affairs, during the (July-February) period, the government obtained slightly over $7 bn in external loans from multiple financing sources.
The gross loans were higher by 12pc or $757 million over the same period of the previous fiscal year.
In February, the government received $539m in foreign loans, including $380m from commercial banks, which were the most expensive ones. Out of the $7 bn, an amount of $3.1 bn was on account of foreign commercial loans.
