Bangladesh signs $4.5b line of credit deal, the third with India

FE Report | Published: October 04, 2017 12:16:54 | Updated: October 25, 2017 05:20:20

Bangladesh and India flags are seen cross-pinned symbolising friendship between the two nations. Photo: Internet

Bangladesh and India Wednesday signed a US$4.5 billion dollar credit line which will be used for 17 development projects.

Bangladesh’s Economic Relations Division Secretary Kazi Shofiqul Azam and Indian Exim Bank Managing Director David Rasquinah signed the deal on behalf of their respective governments and authorities.

"This is the biggest LoC [Line of Credit] India has given to any country. Hopefully, the projects will be implemented quickly," said Arun Jaitley, the Indian finance minister who was present at the signing ceremony at Bangladesh Secretariat.

"The progress of the implementation of the first and the second LoC has not been so good. But the initial trading troubles are now over. And we believe that the implementation of this agreement would be pretty fast," said Bangladesh finance minister AMA Muhith at the ceremony.

Earlier, India gave $2.0 billion and $1.0 billion to Bangladesh in previous two LoC deals, the first of which was in August 2010 and the second in March 2016.



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