• Bangladesh signed a USD 4.5 billion third line of credit (LoC) agreement with India for its infrastructure and social sector development.
• This line of credit will be used to fund 17 major projects in Bangladesh, which include electricity, railroads, roads, shipping and ports.
• Under the agreement, Bangladesh will have to purchase 65% to 75% of the services, goods or works from the Indian market with the money to be provided under the new LoC following the precedence of the previous two nearly identical agreements.

As with previous line of credit (LoC) agreements, Bangladesh will pay an interest rate of 1% a year. It will have 20 years to pay back the loans, with a grace period of five years.