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India approves $4.5 bn loan to Bangladesh for infrastructure projects

The $4.5 bn loan was announced during the visit of Bangladesh PM Sheikh Hasina to India in April

IANS  |  Dhaka 

Arun Jaitley, India, Bilateral Investment Promotion Agreement, Bangladesh
Photo: Twitter (@arunjaitley)

on Wednesday approved a massive $4.5 billion to for funding infrastructure projects, including shipping, ports, roads and power.

"Witnessed signing of $4.5 billion line from to This largest credit ever will build big infrastructure," Economic Affairs Secretary Subhash Chandra Garg tweeted.

"Signed joint interpretive note with today to update Bilateral Investment Promotion Agreement to our new investment framework," he said.

will be using the for funding 17 priority infrastructure projects, including electricity, roads, shipping and ports.

will be giving this credit at an interest rate of 1% a year, which has to repay over a period of 20 years with a grace period of five years.

The signing agreement took place in the presence of Finance Minister Arun Jaitley, who is on a two-day visit to Bangladesh, and his counterpart here.

"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," Jaitley said.

He said that was determined to be a part of Bangladesh's economic development.

"For its own interest, needs a strong, stable and developed In the recent years, granted $8 billion to in three stages and it is the highest amount of given to any country by India," he told reporters

Finance Minister Muhith said, "and have excellent relations at the moment. They stood by us during our independence. We hope they will continue to do so in the future."

The $4.5 billion was announced during the visit of Prime Minister to in April.

First Published: Wed, October 04 2017. 14:47 IST