Bangladesh signs 4.5 billion dollar credit deal with India Hi Tech Beacon
Hi Tech Beacon , Oct 04, 2017
"We have extended three Lines of Credit worth $8 billion to Bangladesh in recent years".
Indian Finance Minister Arun Jaitley, who was present in the agreement signing ceremony, told the journalist: "This is the biggest LOC India has given to any country".
He said two agreements for the implementation of the third LoC and the "Joint Interpretative Notes on the Agreement between India and Bangladesh for the Promotion and Protection of Investments" would also be signed in the presence of Mr. Jaitley and his Bangladesh counterpart A.M.A. Muhith.
Economic Relations Division Secretary Kazi Shofiqul Azam signed the deal on behalf of Bangladesh, while Managing Director of the Export-Import Bank of India (Exim) David Rasquinha signed for India.
The loan, which has to be repaid in 20 years, bears a 1 percent annual interest with a 5-year grace period. "We are committed to working with Bangladesh to deepen our bilateral ties". "This significant agreement is a continuation of that effort". On his arrival in Dhaka on Tuesday, Jaitley will deliver the inaugural address at the business meeting between the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) and the Federation of Indian Chambers of Commerce and Industry (FICCI).
The 4.5 billion loan for Bangladesh was announced during Bangladeshi Prime Minister Sheikh Hasina's visit to New Delhi in April this year.
Under the agreement, Bangladesh would have to purchase 65 to 75 per cent of the services, goods or works from the Indian market with the money to be provided under the third LoC following the precedence of the previous two almost identical agreements.
"The two countries are also expected to enter into another deal on investment promotion and protection during the visit", the spokesman said.