Deal 'Soon' for $1b Credit Line from India
Thursday, 22 July 2010

Dhaka and New Delhi are finalising the modalities of implementing the US $ 1 billion Line of Credit (LoC) that India offered to Bangladesh last January.

The Bangladesh government is going to ink a deal with India's Exim Bank that New Delhi will route the credit line through.
Highly-placed sources in the Indian government said that the Exim Bank would possibly sign an agreement with Bangladesh government within a month for utilisation of the credit line.

Indian prime minister Manmohan Singh had announced the credit line during prime minister Sheikh Hasina's visit to New Delhi from January 10 to 13 this year.

T C A Ranganathan, the chairman and managing director of the Exim Bank, recently told journalists in Kolkata that the premier export finance institution of India was now waiting for Bangladesh's communiqué with details about the project that Dhaka would use the LoC for.

Singh had announced the line of credit for a range of projects in Bangladesh, including railway infrastructure, supply of broad gauge locomotives and passenger coaches, rehabilitation of Saidpur workshop, procurement of buses including articulate buses and dredging projects.

According to the joint communiqué issued at the end of the talks between the two prime ministers, both Hasina and Singh "expressed the desire that Line of Credit and the comprehensive framework of cooperation for development be operationalised at the earliest."

India's Line of Credit for Bangladesh was the one-time single largest aid package of New Delhi for any other country.


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