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Indian bank approves $1b credit
Indian bank approves $1b credit | Bangladesh | bdnews24.com
Tue, Feb 15th, 2011 9:20 pm BdST
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Dhaka, Feb 15 (bdnews24.com) The EXIM Bank of India has endorsed the line of credit (LOC) agreement with Bangladesh involving $1 billion with effect from Feb 1.
The Bangladesh government signed the 'much controversial' credit agreement with the public sector bank of India on Aug 7 last year when Indian finance minister Pranab Mukherjee visited the country.
Aug 7, 2010 is the date of execution for the agreement that drew much criticism for the Bangladesh government.
The endorsement of the credit agreement with effect from February 1, 2011 means that the Indian bank makes the money available for Bangladesh and starts charging the interest from that date.
A notification of the Reserve Bank of India (RBI) says the last date for opening of letters of credit (LCs) and disbursement of funds will be 48 months from the scheduled completion dates of contracts in case of project exports.
It will be 72 months (August 6, 2016) from the execution date of the credit agreement in case of supply contracts, it added.
The Exim Bank will charge 1.75 per cent interest per annum with a commitment fee of 0.5 per cent on unutilised credit after 12 months from the date of contract approval.
The repayment period is 20 years with grace period of five years, according to the agreement.
The RBI notification also says 85 per cent of the total amount will be supplied by Indian sellers in the forms of goods and services and consultancy.
"The remaining 15 per cent goods and services (other than consultancy) may be procured by the seller for the purpose of eligible contract from outside India," it added.
Indian bank approves $1b credit | Bangladesh | bdnews24.com
Tue, Feb 15th, 2011 9:20 pm BdST
Dial 2000 from your GP mobile for latest news
Dhaka, Feb 15 (bdnews24.com) The EXIM Bank of India has endorsed the line of credit (LOC) agreement with Bangladesh involving $1 billion with effect from Feb 1.
The Bangladesh government signed the 'much controversial' credit agreement with the public sector bank of India on Aug 7 last year when Indian finance minister Pranab Mukherjee visited the country.
Aug 7, 2010 is the date of execution for the agreement that drew much criticism for the Bangladesh government.
The endorsement of the credit agreement with effect from February 1, 2011 means that the Indian bank makes the money available for Bangladesh and starts charging the interest from that date.
A notification of the Reserve Bank of India (RBI) says the last date for opening of letters of credit (LCs) and disbursement of funds will be 48 months from the scheduled completion dates of contracts in case of project exports.
It will be 72 months (August 6, 2016) from the execution date of the credit agreement in case of supply contracts, it added.
The Exim Bank will charge 1.75 per cent interest per annum with a commitment fee of 0.5 per cent on unutilised credit after 12 months from the date of contract approval.
The repayment period is 20 years with grace period of five years, according to the agreement.
The RBI notification also says 85 per cent of the total amount will be supplied by Indian sellers in the forms of goods and services and consultancy.
"The remaining 15 per cent goods and services (other than consultancy) may be procured by the seller for the purpose of eligible contract from outside India," it added.
being a small country bangladesh get large aid, they get export quota. they get credits.
