India, Bangladesh sign $2 billion Line of Credit

India has signed the second line of credit (LOC) agreement extending 2 billion dollars in development financing to Bangladesh for undertaking various development projects.
This credit line will be provided through Export Import Bank of India (Exim Bank), India’s external lending arm. It is Exim Bank’s biggest ever LOC facility given to another country.
The development financing will be used in the infrastructural projects like power sector, road transportation, railways, shipping, information and communication technology (ICT) and social sector projects like health and technical education.
Background
The financing deal comes after Prime Minister Narendra Modi in June 2015 had announced new credit line to Bangladesh during his official visit to Dhaka. It follows India’s earlier 1 billion dollar in assistance provided to Bangladesh in 2011 for infrastructure development.

Month: Current Affairs - March, 2016