Published On: Wed, Oct 4th, 2017

India set to lend $4.5 bn to Bangladesh

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In order to help Bangladesh to carry out their development activities, the Indian authorities are set to lend nearly 4.5 billion US dollars to its neighbour in the form of the Line of Credit.

It is the third time that such a LoC has been contributed by the country towards the development of the economically weak neighbour.

On behalf of India, David Rasquinha, the Managing Director of the Export-Import Bank of India has signed the LoC agreement. Meanwhile, Kazi Shofiqul Azam, the Secretary of Bangladesh Economic Relations Division has inked the agreement for the Bangladeshis.

As per the agreement, the money granted under the LoC may only be used for the infrastructure and social sector development purpose.

Another prime condition of the agreement is that the country which accepts the credit should use 65 to 75 per cent of the money to purchase the service, goods or work, required to carry out the project financed through this LoC, from Indian Market.

As per the media report, Indian Finance Minister Arun Jaitley and his Bangladeshi counterpart, A.M.A Muhith, have been present at the venue.

It seems that with this agreement India aims to strengthen the infrastructure and social sectors of its friendly neighbour.

 

Vignesh. S. G

Photo Courtesy: Google/ images are subject to copyright 

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India set to lend $4.5 bn to Bangladesh