India Extends $2 Billion Credit Line to Bangladesh
March 10, 2016: India has extended $2 billion credit line to finance Bangladesh. According to the Indian government external lending arm, this is the agency’s biggest ever lending to another country. The authorized committee has signed this agreement in Dhaka on Wednesday.
The PM Modi had announced this new credit line to Bangladesh in June last year. India has provided $1 billion to Bangladesh for infrastructure development in 2011.
Bangladesh is planning to use this credit line in the power sector, road transportation, shipping, railways, health, IT & communication, and technical education sectors.
During PM Modi’s visit to Dhaka, the two nations signed an agreement of land boundary to resolve the territorial disputes.