First Indian Credit Line increases to $862m
06 August 2015, Nirapad News: India had extended a line of credit of USD 1 billion to Bangladesh government in January 2010 for a range of projects in the railways, communications, infrastructure and other sectors.
Out of this amount, USD 200 million was converted to grant which has been fully disbursed to the Bangladesh government.
Based on further negotiations, India and Bangladesh agreed to enhance the remaining Credit Line amount of USD 800 million to USD 862 million. This was done to cater for increase in expenditure on the Khulna-Mongla and Kalaura-Shahbazpur railway projects.
EXIM Bank of India and Bangladesh finance ministry’s Economic Relation Division (ERD) have now concluded all necessary formalities and signed the Second Amendatory Agreement raising the amount of the first credit line from USD 800 million to USD 862 million.