India has extended a line of credit of $1 billion to the government of Bangladesh for a range of projects in the railways, communications, infrastructure and other sectors.
Out of this amount, $200 million was converted to grant which has been fully disbursed to the government of Bangladesh, said an Indian High Commission press release on Wednesday.
Based on further negotiations, India and Bangladesh agreed to enhance the remaining Credit Line amount of $800 million to $862 million, it said.
This was done to cater for increase in expenditure on the Khulna-Mongla and the Kalaura-Shabazpur railway line projects, it added.
According to the release, EXIM Bank of India and ERD Division of the Ministry of Finance, government of Bangladesh have now concluded all necessary formalities and signed the Second Amendatory Agreement raising the amount of the first credit line from $800 million to $862 million.
