India eases $1 bn credit line to Bangladesh

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SME Times News Bureau | 30 Aug, 2012
India will convert $200 million of a $1 billion line of credit to Bangladesh to a grant, it was announced in Tehran on Wednesday.

The announcement came after bilateral talks between Indian Prime Minister Manmohan Singh and Bangladeshi Premier Sheikh Hasina on the sidelines of the 16th Non-Aligned Movement Summit here, official sources said.

"The talks were held in an extremely cordial and friendly atmosphere and lasted 40 minutes. This included a 15-minute one-on-one between the two leaders," the source aid.

The two leaders reviewed the progress on trade, security and power issues.

India also assured Bangladesh that it is committed to the "completion of action" on their land border agreement and the Teesta waters treaty. No time frame, however, was set, the sources said.

On the Tipaimukh Dam on the Teesta river, India assured Bangladesh that it would not do anything that may go against Dhaka's interests, the sources said.

To dispel any misgivings, India had also conducted a group of Bangladeshi journalists to the project site to show to them that India is not engaged in any construction activity there.

The two countries have also decided to increase the number of border haats (markets) to boost local trade and commerce.

External Affairs Minister S.M. Krishna, National Security Advisor Shivshankar Menon and Foreign Secretary Ranjan Mathai were present during the talks.