Dhaka: Bangladesh and India on Wednesday signed the final agreement of $4.5 billion third Indian Line of Credit (LoC).

Economic Relations Division (ERD) of Bangladesh and EXIM Bank of India signed the deal.

Indian Finance Minister Arun Jaitley arrived here on Tuesday afternoon and Finance Minister AMA Muhith witnessed the signing at the Finance Ministry.

During the visit of Prime Minister Sheikh Hasina to India in April 2017, an Indian Line of Credit of US$ 4.5 billion was announced for Bangladesh.

This deal brought the total quantum of credit lines extended by India to Bangladesh over the last six years to US$ 8 billion.

Signing of the Third Dollar Credit Line Agreement will enable the implementation of a number of key infrastructure projects of priority to Bangladesh, an official said.

In addition, the ‘Joint Interpretative Notes on the Agreement between India and Bangladesh for the Promotion and Protection of Investments’ was also be signed in the presence of the two Ministers.

As many as 17 projects have been identified for funding with the new line of credit, all of which got the green light from the Indian Exim Bank.

Both the countries will give more emphasis on transparency and integrity than the conditions for implementation of projects under the 3rd LoC to ensure quality of works and expedite implementation of projects.