Bangladesh reduced its debt from $665 million to $10 million in just eight months.
Petro-Bangla paid $94.5 million for its LNG imports. This payment included $62.54 million for immediate purchases from Vitol Asia $28 million, OQT $22 million, Excelerate LP $7.04 million and Guvnor Singapore $5.5 million. An additional $32 million was paid to Qatar-Energy LNG, with the transaction facilitated by the International Islamic Trade Finance Corporation in Jeddah.
In addition, starting with a $237.55 million balance on August 5th,2024, US energy company Chevron’s bill was fully settled by April 21,2025.
As of August 5th, last year, Qatar Energy LNG and Oman Trading Ltd were owed a combined $317.48 million, but the balance is now zero.
There is been a substantial reduction in spot market liabilities, from $110.73 million eight months prior to the current balance is $10 million.
By offering sovereign guarantees for Petro Bangla’s payments and relaxing central bank restrictions, the interim government aimed to make it easier for banks to acquire dollars through competitive bidding and increased remittance inflows.
This approach proved effective. Bangladesh’s remittance inflow exceeded $7 billion from August to October 2024, with state banks capturing nearly 30% providing a substantial lift to foreign exchange reserves.
The interim government’s quick response prevented late fees and helped restore confidence among international energy providers.
Consequently, even with ongoing energy challenges, Bangladesh’s self-funded debt repayment is being celebrated as a remarkable instance of fiscal recovery debt during its political transition.
