Bangladesh today signed $4.5 billion third Line of Credit (LoC) agreement with India as both sides pledged to bolster the economic ties between the two close neighbors.
Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and Managing Director of Indian EXIM Bank David Rasquinha signed the agreement on behalf of their respective sides at the Finance Ministry in presence of Finance Minister AMA Muhith and Indian Finance and Corporate Affairs Minister Arun Jaitley.
The funds will be used for 17 priority infrastructure projects, which include health, education, electricity, railroads, roads, shipping and ports.
“The money will be spent in projects of infrastructure, health and education. I am hopeful of implementing the projects within the stipulated time,” Muhith told reporters.
“The two countries have excellent relations at the moment,” he said.
Arun Jaitely said Bangladesh has developed significantly on the socioeconomic front over the past seven years and India has stood by Bangladesh’s attempts to develop.
“We will do so in the future. This significant agreement is a continuation of that effort,” said the Indian finance and corporate minister.
“India continues to attach the highest importance to its relations with Bangladesh . . . a strong, stable and prosperous Bangladesh is in India’s interest and we are committed to working with Bangladesh to deepen our mutual engagement,” Jaitley added.
The Indian Line of Credit of $ 4.5 billion was announced for Bangladesh during Prime Minister Sheikh Hasina’s visit to India in April 2017.
This will bring the total quantum of credit lines extended by India to Bangladesh over the last six years to $8.0 billion.
The Joint Interpretive Notes on the agreement between the two countries was also signed at the ministry to promote and protect of investments.