DHAKA: Bangladesh signed a $2 billion line of credit (LOC), loans at subsidized rates from agencies, with India on Wednesday (March 9).

The government signed the LOC with Export-Import (EXIM) Bank of India at NEC conference room at Sher-e-Bangla Nagar in city around 3:00pm in the afternoon.

Bangladesh’s Economic Relations Division (ERD) senior secretary Mohammad Mejbahuddin and EXIM Bank of India chairman and also its managing director Yaduvendra Mathur signed the deal for the respective parties.

The money will be used for the development of railroad, electricity and information technology (IT) sectors.

However, as per conditions, Bangladesh has to buy at least 75 percent of products and services from India.

This LOC came as a fulfillment of promise by India Prime Minister Narendra Modi that he made to his Bangladesh counterpart Sheikh Hasina during his visit to here.

BDST: 1731 HRS, MAR 09, 2016
SR/RR/SMS