Dhaka, October 4: India and Bangladesh today signed the massive third line of credit (LoC) agreement involving 4.5 billion dollar for infrastructure and social sector development.
"Bangladesh has developed significantly on the socioeconomic front in the past seven years," Arun Jaitley said following the signing of the deal.
"We have stood by Bangladesh s attempts to develop and we will do so in the future. This significant agreement is a continuation of that effort," he said.The line of credit was signed in the presence of Union Finance Minister Arun Jaitley, who is on a 3-day visit to Bangladesh, and his counterpart AMA Muhith. The line of credit agreement was announced during Prime Minister Sheikh Hasina's recent New Delhi visit.
Primarily, 17 development projects have been identified for implementation under the credit line, says a press release of finance ministry issued in this regard this morning. The money will be spent in projects of infrastructure, health and education, Finance Minister AMA Muhith told reporters in a short briefing after the signing ceremony.
Significanty, Bangladesh has two other LoCs open with India: the first one was signed in 2010, and the second one in 2016. These LOCs are collectively worth Tk3.06 billion, but till last year, Bangladesh government has been able to use only USD 576 million.
Jaitley is scheduled to meet the Prime Minister in the evening. He will also address a gathering on 'Macroeconomic initiatives of the Indian economy before launching a scheme of cashless visa services of the Indian High Commission.
Yesterday, addressing a programme on Bangladesh-India trade relations in Dhaka, the Finance Minister said, both the countries should boost trade relations to reflect their rich common roots. Jaitley said New Delhi and Dhaka have been extremely focused on internal progress, and both governments have been closely interacting to realize the potential of a rich economic relationship.