India has signed a landmark deal with Bangladesh yesterday of $2 billion in its biggest ever overseas credit line. The deal came after 5 years of signing a credit agreement of $1 billion with Bangladesh.
- This $2 billion line of credit (LOC) is by far the biggest that India has extended to any country yet. The two countries were in talks with each other about the agreement since PM Narendra Modi visited Bangladesh in June, 2015. According to some officials from Bangladesh, this credit will be used in improvisation of the social sector. The earlier deal of $1 billion which was signed in 2010 was utilized on mainly strengthening the communication infrastructure.
- The landmark agreement is especially significant of strengthening the bilateral ties between the two countries. So far, 14 projects have been planned on to be improved namely areas of power, railways, roads, transportation, information and communication technology, shipping, health and technical education.
- Apart from improving the infrastructure, special focus will be given on improving the quality of life especially pertaining to health and technical education with the aim of further strengthening the economic ties and mutual cooperation between the two countries. All the projects have already received a positive nod from EXIM Bank of India. Out of the selected projects however, seven has already been completed, according to an official privy to the deal.
- The Indian envoy has revealed that the two countries have developed a joint mechanism to supervise the proper implementation of the pending projects as well.