India and Bangladesh today signed a new 2 billion dollar credit agreement to implement socio-economic projects and to deepen the existing strong bilateral relations between the two neighbouring countries. Announced by Prime Minister Narendra Modi during his June visit to Dhaka last year, it is the biggest and softest line of credit India has extended to any country. It carries a low 1 percent interest rate with a 20-year repayment period.
The agreement was inked at the hands of the Chairman and Managing Director of EXIM Bank of India, Yaduvendre Mathur and Mohammed Mejbahuddin, Economic Relations Department Secretary of the Government of Bangladesh in the presence of Indian High Commissioner Harsh Vardhan Sringla.
Besides infrastructural projects, the agreement stresses co-operation in social sectors like health and education involving the establishment of medical colleges and hospitals, modernisation of 2 teachers’ training institutes and the upgradation of 49 polytechnic institutes for better vocational training.
On the occasion, Indian envoy said the credit agreement is yet another step forward to bring the economies of both countries closer and deepen people-to people contacts. India had extended a first One billion Dollar line of credit in 2010 during the visit of former Prime Minister Manmohan Singh under which 7 of the 15 projects have been completed and the remaining 7 are under various stages of completion. Besides infrastructure projects like railway links, deep ports, roads, shipping and ICT, the agreement stresses co-operation in social sectors.