India, Bangladesh marked 2 billion US dollar Line of Credit
India and Bangladesh on 9 March 2016 marked a 2 billion US dollar Line of Credit (LOC) to execute financial advancement ventures in Bangladesh and reinforce reciprocal relations. The LOC was reached out by Export-Import Bank of India (Exim Bank) in the interest of the Government of India.
The 2 billion US dollar LOC is the greatest credit line India has so far stretched out to any nation.
The LOC consent to this impact was marked in Dhaka, Bangladesh by Yaduvendra Mathur, Chairman and Managing Director, EXIM Bank, and Mohammad Mejbahuddin, Senior Secretary, Economic Relations Division, Ministry of Finance, in the interest of the Government of the People’s Republic of Bangladesh.
The assention was inked in accordance with Prime Minister Narendra Modi’s declaration amid his visit in Bangladesh in June 2015.
Key highlights of the LOC:
• The LOC of 2 billion US dollars is the biggest ever GOI-upheld LOC reached out by Exim Bank to any nation.
• With the marking of the LOC, EXIM Bank, till date, has stretched out two LOCs to Bangladesh, for the benefit of Government of India, taking the aggregate estimation of LOCs to 2.862 billion US dollars.
• India initially broadened a LOC of 1 billion US dollars to Bangladesh in 2010.
• Of this, 200 million US dollar was later changed over into stipend and the credit extension was upgraded from 800 million US dollar to 862 million US dollar in 2015 by method for a revision to the understanding.
• The Second Line of Credit will subsidize social and foundation improvement ventures in the force, railroads, street, transport, data and correspondence innovation, transportation, wellbeing and specialized training segments.
Ventures secured under the principal LOC of 862 million US dollars include:
• Procurement of transports, trains, traveler mentors and other moving stock, research center gear.
• Construction of second Bhairab and second Titas Bridge, Khulna-Mongla port rail line, third and fourth Dual Gage track between Dhaka-Tongi segment and multiplying of double gage track between Tongi-Joydebpur, restoration of the Kulaura-Shahbajpur area of Bangladesh Railway.
• Replacement and modernization of flagging arrangement of three stations in the middle of Ashuganj and Akhaura segment of Bangladesh Railway.