India considers fresh ‘$1b credit line’

In continuation of economic relations, neighbouring India has considered Bangladesh another Line of Credit (LoC) of “around one billion dollar”.

“We will utilise the loan in education and health sectors,” Finance Minister AMA Muhith said after a meeting with visiting Sujata Mehta, secretary of Indian external affairs ministry (Multilateral and Economic Relations), at his office at secretariat.

India has wanted to know the sectors Bangladesh is keen to spend the loan, the minister said while talking to reporters. However, he did not specify any amount.

The amount will help implement development projects for more economic prosperity, sources at Economic Relations Division (ERD) hinted adding that the credit would be about $1 billion.

During former Indian prime minister Manmohan Singh’s tenure, Bangladesh received the first one billion-dollar soft loan from India in 2010 through a deal opening a new era in the relations between the two neighbours.

The line of credit is still the single largest loan to Bangladesh from any nation, development bank or donor agency.

Mehta arrived in Dhaka yesterday on a three-day visit to review and discuss the ongoing India-Bangladesh development partnership and economic cooperation.