Bangladesh signs USD 4.5 billion deal with India
Bangladesh signed a USD 4.5 billion agreement with India in the presence of Finance Minister Arun Jaitley, for its infrastructure and social sector development. Managing Director of the Export-Import Bank of India (Exim) David Rasquinha signed the deal on behalf of India while Economic Relations Division Secretary Kazi Shofiqul Azam signed the deal on behalf of Bangladesh. 17 major projects in Bangladesh will be funded by the latest dela between the two - which include electricity, railroads, roads, shipping and ports. Bangladesh will pay back the loan in 20 years, with a grace period of five years. The interest rate of 1 per cent a year will be added. “Bangladesh has developed significantly on the socio-economic front in the past seven years,” Jaitley said while signing the deal. “We have stood by Bangladesh’s attempts to develop and we will do so in the future. This significant agreement is a continuation of that effort,” he added. Speaking on the occasion, Muhith said, “Bangladesh and India have excellent relations at the moment.” “They stood by us during our independence. We hope they will continue to do so in the future,” he added. Bangladesh would have to purchase 65 to 75 per cent of the services or goods from the Indian market with the money provided under the third LoC. Bangladesh had signed two other LoCs with India, in 2010, and the second one in 2016. -PTC News
