India to provide buyers credit for projects in Bdesh

Dhaka: Giving a boost to bilateral ties with Bangladesh, India on Sunday said it will provide buyers` credit for projects in the neighbouring country.

Buyers credit is generally given on the understanding that the project developers would source equipment or technology from the credit-giving country.

"We will provide buyers credit for projects in Bangladesh. It will be a direct government credit for private sector projects," Commerce and Industry Minister Anand Sharma told reporters here.

Although he did not disclose the amount, it is believed that India may extend the buyers credit around USD 100 million.

The minister said, "…(the amount) will be substantial and this will be done by National Export Insurance Account." He said that the credit would be given for big projects and which have long term gestation period of 5-10 years.

"We have taken the RBI and Planning Commission on board for this," Sharma added.

He also said that such facility would later on extended to other countries like South Africa and some South Asian nations.

Sharma, who is leading a strong business delegation here for two days, also met Finance, Commerce, Foreign, Food and disaster management Ministers of Bangladesh, besides addressing Joint Business meeting of FICCI and Bangladesh apex business chamber.

He also today called on the Prime Minister of Bangladesh Sheikh Hasina, who expressed satisfaction over the outcome of the visit of the Indian Minister and called the Indian decisions ?timely?.

Both sides agreed that serious efforts are needed to restore the railway lines that went into disuse after the 1965 War.