India gave Bangladesh a billion-dollar soft loan on Saturday, the biggest credit package New Delhi has ever earmarked for any nation, highlighting warming ties between the neighbours, officials said.
Ties were chilly between the South Asian neighbours from 2001 to 2006 when Bangladesh was ruled by an Islamist-allied government, and New Delhi regularly accused Dhaka for fostering militancy.
“This one-billion-dollar line of credit is the largest ever given by India to any country,” said Indian Finance Minister Pranab Mukherjee in Dhaka.
“I am confident that this line of credit will be the stepping stone for a shared destiny and will transform our bilateral engagement,” he said.
The line of credit also marked the single largest loan Bangladesh has received from any nation, Dhaka’s Economic Relations Division secretary Mosharraf Hossain Bhuiyan said.
Mukherjee arrived in Dhaka on Saturday for a lightning visit to attend the load signing and for talks with government leaders. Indian officials remarked that Mukherjee’s presence underscored the improved realtionships that New Delhi and Bangladesh shared.
“The terms of credit are very favourable to Dhaka. The interest rate is just 1.75 percent and will be paid back in 20 years,” Bhuiyan said.
Bangladeshi Finance Minister AMA Muhith said that the credit line would be used to enhance transport links between the two countries.
Published in The Express Tribune, August 8th, 2010.
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