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flag Bangladesh’s debt soared 42% to $105B by 2024, fueled by Chinese loans, raising debt-trap fears.

flag Bangladesh’s external debt surged 42% to nearly $105 billion by end-2024, driven by Chinese loans under the Belt and Road Initiative, raising fears of a debt trap like Sri Lanka’s. flag The debt-to-GDP ratio rose to over 39%, and debt servicing now consumes 16% of export earnings, becoming the second-largest budget expense, surpassing spending on agriculture and education. flag The current fiscal year’s budget is the smallest on record, with officials citing severe fiscal strain. flag Under interim leader Mohammed Yunus, ties with China have strengthened, though Beijing also engages with other political groups, including pro-Pakistan Jamaat-e-Islami.

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