All the ministries and divisions concerned have been asked to evaluate the conditions tagged with the Indian second line of credit worth US$2 billion.
Economic Relations Division (ERD) yesterday gave the directive at an inter-ministerial meeting at the planning ministry, with Additional Secretary of ERD Mohammad Asif-uz-Zaman in the chair.
It was a preliminarily meeting and a series of meeting will be held in the next couple of months before finalising the loan, an ERD official told the Dhaka Tribune.
The Exim Bank of India, which will extend the loan, proposes investing in seven sectors - power, railways, road transportation, ICT, shipping, health and technical education.
The draft loan agreement states the contract would be signed between the government of Bangladesh and the bank. The proposed interest rate for the dollar-denominated credit is 1% annually. In default, the rate will increase up to 2% . The proposed commitment fee for the credit is 0.5% per year.
Goods and services, including consultancy, worth at least 75% of the contract value must be supplied by the Indian firms, but will be procured by Bangladesh. The remaining 25% of goods and services to be procured by Bangladesh must have Indian consent.
