Indian lines of credit to Bangladesh from different viewpoints
Unsplash Representational Image More than 64 percent of credit among the top 10 borrowers is deployed in Bangladesh, Nepal, Sri Lanka, and Myanmar, keeping in tune with India’s Neighborhood First policy. Bangladesh has been the highest recipient of Indian LOCs. These loans carry a one percent interest rate and a 0.5 percent commitment fee. The repayment period will be 20 years with a moratorium period of five years. India’s development cooperation with Bangladesh is based on the modern concept of a development compact, which provides for development assistance that works at five different levels: trade and investment; technology exchange; skills upgrading; lines of credit (LoCs); and finally, grants. Prime Minister Narendra Modi, during his visit to Dhaka in 2015, said that Bangladesh is not merely a neighbor but a nation with which India shares enduring links. President Ram Nath Kovind has termed Bangladesh India’s closest neighbor. During her last visit to Dhaka, Exter...