Indian Finance Minister Arun Jaitley said his country was “fully determined” to be a part of Bangladesh’s economic development process on the second day of his visit to Dhaka on Wednesday.
The finance minister reaffirmed India’s commitment to its eastern neighbour during a meeting with his Bangladesh counterpart, AMA Muhith, at the Secretariat.
“For its own interest, India needs a strong, stable and developed Bangladesh,” Arun Jaitley told reporters after the meeting. “We are determined to work with Bangladesh to strengthen the relationship between the two countries.”
The meeting followed the signing of the third Line of Credit (LOC) worth $4.5 billion in Dhaka on Wednesday, by Indian Exim Bank Managing Director Shri David Rasquinha and Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam.
“This agreement will help implement 17 projects under electricity, railways, road and shipping sectors,” Jaitley said.
Also Read- Bangladesh signs $4.5bn 3rd LOC deal with India
Bangladesh has two other LOCs open with India: the first one was signed in 2010, and the second one in 2016.
In total, the Indian finance minister said India had granted $8bn in loans to Bangladesh in recent years.
“It is the highest amount of loan given to any country by India. The interest for this loan is only 1% and it needs to be repaid in 20 years,” he said.
Although these LOCs are collectively worth Tk3.06 billion, up to last year the Bangladesh government was only able to use $576 million of the loans.This article was first published on Bangla Tribune
Thursday, June 04, 2026
