Bangladesh, India sign $2 billion new line of credit

[SRP]

Bangladesh and India have signed a new $2 billion credit agreement to implement socio-economic development projects in Bangladesh and strengthen bilateral relations.

This is the biggest line of credit India has extended to any country so far.

Prime Minister Narendra Modi had promised the assistance during his Bangladesh visit last year.

The interest rate has been fixed at 1 percent annually with a 20-year repayment term, including a five-year moratorium.

Besides infrastructural projects, the agreement stresses cooperation in social sectors such as health and education, involving the establishment of medical colleges and hospitals, the modernisation of two teachers’ training institutes, and the upgrading of 49 polytechnic institutes for better vocational training.

Chairman and Managing Director of EXIM Bank of India Yaduvendra Mathur, and Economic Relations Department (ERD) Secretary Mohammad Mejbahuddin signed the agreement on Wednesday at the ERD auditorium in Dhaka.

The two sides expect the agreement to bring the economies of the two countries closer and strengthen “our practical cooperation” in different sectors.

The Indian High Commission said the government of India was committed “to speedy approvals of project proposals under the LOC”.

, $200 million was later converted into grant and the line of credit was enhanced from $800 million to 862 million in 2015 by means of an amendment to the agreement.

All the 15 projects under the First LOC have been cleared by India’s EXIM Bank.

Seven of the total 15 projects have been completed, while work was on in the rest, the High Commission said.

The Second Line of Credit will fund social and infrastructure development projects in the power, railways, road, transport, information and communication technology, shipping, health and technical education sectors.

Principal Secretary Abul Kalam Azad, Foreign Secretary Md Shahidul Haque and Indian High Commissioner Harsh Vardhan Shringla witnessed the signing.

EXIM Bank Chairman Mathur said this “record” line of credit would take Dhaka-Delhi relations “to a new height”.

He said this was the “highest” loan India had extended to any country. “We believe Bangladesh will use this successfully."

ERD Secretary Mejbahuddin said 14 projects including health, education and communication had been identified for this credit line.

Replying to a question, he said, companies for implementing those projects would be selected through open tender.

Under the agreement, 75 percent of the project materials must be bought from India.

Construction of a double railway line and including signalling systems in the Khulna-Darshana section, development of the Ashuganj river port-Dharkhar-Akhaura land port road, Barapukuria-Bogra-Kaliakoir 400KV electricity line, and establishment of IT/Hi-tech Park at the district level are some of the major projects.

Bangladesh, India sign $2 billion new line of credit -
bdnews24.com

India extends biggest ever line of credit worth $2 billion to Bangladesh - The Economic Times

 

[my2cents]

With this 2 billion India could have built at least 20 million toilet in the Indian villages which are literary sinking under the pile of human feaces. But alas India choose to give those 2 billion to Bangladesh which have almost universal sanitation coverage. I know India is giving a lot of money to the neighboring countries or even Africa.Is this the part of strategy to become the first ''toilet less super power'' in the world by 2020? Question to my Indian friends.

Looks like you had diarrhea. Drink lot of fluids and take rest. It happens when you spend too much time on PDF.

 

[skyisthelimit]

With this 2 billion India could have built at least 20 million toilet in the Indian villages which are literary sinking under the pile of human feaces. But alas India choose to give those 2 billion to Bangladesh which have almost universal sanitation coverage. I know India is giving a lot of money to the neighboring countries or even Africa.Is this the part of strategy to become the first ''toilet less super power'' in the world by 2020? Question to my Indian friends.

Ya we are a bit lagging on it. Its going up slowly. PM Modiji has initiated this after becoming PM. A lot of villages are becoming open defecation free now. Govt is also giving subsidy and financial aid.

 

[Homo Sapiens]

Ya we are a bit lagging on it. Its going up slowly. PM Modiji has initiated this after becoming PM. A lot of villages are becoming open defecation free now. Govt is also giving subsidy and financial aid.

Yeah, very very slowly.But the question is how can you convince your countrymen to go inside a confinement when whole Bharat is a big beautiful toilet for them to release.

India’s Toilet Race Failing as Villages Don’t Use Them - Bloomberg Business

 

[skyisthelimit]

Yeah, very very slowly.But the question is how can you convince your countrymen to go inside a confinement when whole Bharat is a big beautiful toilet for them to release.

India’s Toilet Race Failing as Villages Don’t Use Them - Bloomberg Business

Everything takes time.
A lot of toilets have been constructed and initiated under swach bharat abhiyan. We will overcome it.

For example polio eradication was a challenge, we achieved it. They will be convinced slowly and eventually just as Bangladeshis also got convinced. Today Bangladesh has proud achievement of no open defecation.

 

[Max]

What about farmars in bharat doing suicides in thousands every year? Why dont modi spend this money on them?

It seems a colonial govt is ruling Bharat. Modi is more obsessed with fake PR then problems of his own people.

 

[bongbang]

Its business they are doing their job well. Its not charity which comes by 1% interest which is cheap for us but they will export 75% of their products as well. If its helpful for our communication sector and power sector then welcome.

 

[nik141993]

Its business they are doing their job well. Its not charity which comes by 1% interest which is cheap for us but they will export 75% of their products as well. If its helpful for our communication sector and power sector then welcome.

you are one of few sane member i have seen in this forum , you sure you are bangladeshi

 

[Homo Sapiens]

Its business they are doing their job well. Its not charity which comes by 1% interest which is cheap for us but they will export 75% of their products as well. If its helpful for our communication sector and power sector then welcome.

That's true.This loan come with 1 percent interest rate and 20 years repayment time with 5 years moratorium.How can India will profit from this deal with only 1 percent interest rate when inflation of USD is more than 1 percent? The value of 1 dollar in 20 years later will not be the same as today?

 

[Jamwal's]

With this 2 billion India could have built at least 20 million toilet in the Indian villages which are literary sinking under the pile of human feaces. But alas India choose to give those 2 billion to Bangladesh which have almost universal sanitation coverage. I know India is giving a lot of money to the neighboring countries or even Africa.Is this the part of strategy to become the first ''toilet less super power'' in the world by 2020? Question to my Indian friends.

Because these 2 billion might help you elevating your Piss poor HDI status may be few hospitals so that Poor BDs wont line up for Indian Hospitals.Universal sanitation is not a lone indicator for development.

 

[bongbang]

That's true.This loan come with 1 percent interest rate and 20 years repayment time with 5 years moratorium.How can India will profit from this deal with only 1 percent interest rate when inflation of USD is more than 1 percent? The value of 1 dollar in 20 years later will not be the same as today?

There is no reason BD will buy Indian railway engines and buses otherwise. And the product rates will also keep on increasing as we go.

you sure you are bangladeshi

Mother's family is from Murshidabad and father's Comilla. My present homeland is Khulna, resident of Dhaka. Im all mixed.

 

[Riyad]

There is no reason BD will buy Indian railway engines and buses otherwise. And the product rates will also keep on increasing as we go.



Mother's family is from Murshidabad and father's Comilla. My present homeland is Khulna, resident of Dhaka. Im all mixed.

You are half Indian from mother's side but @Rain Man is full Bangladeshi from father and mother both side. He said his parents are from Dhaka and Barisal. He is currently having Indian citizenship under 'Bangladeshi migrant' quota.

 

[SarthakGanguly]

Yeah, very very slowly.But the question is how can you convince your countrymen to go inside a confinement when whole Bharat is a big beautiful toilet for them to release.

India’s Toilet Race Failing as Villages Don’t Use Them - Bloomberg Business

Carrot and danda.

 

[my2cents]

Its business they are doing their job well. Its not charity which comes by 1% interest which is cheap for us but they will export 75% of their products as well. If its helpful for our communication sector and power sector then welcome.

I don't think BD will exist in 20 more years because of climate changes. We should demand full payment- max 5 years.

 

[Homo Sapiens]

I don't think BD will exist in 20 more years because of climate changes. We should demand full payment- max 5 years.

Bangladeshi landmass existing for at least 71 million years as a part of Indian tectonic plate.Now all of a sudden Bangladesh will disappear in 20 years? How much ganja you are smoking dude?