Indian Exim Bank to open office in Dhaka

The Exim bank of India is going to set up a ‘representative office’ in Dhaka soon to monitor the ongoing projects implemented under three different lines of credit (LOCs), government sources said.

In this context, an agreement on ‘Concerning Implementation of the LOCs Committed by India to Bangladesh’ is likely to be signed between Dhaka and New Delhi during Prime Minister Sheikh Hasina’s India tour on October 3–6.

According to sources, 47 projects amounting to USD 1,231.95 million under the three LOCs have been taken up since 2010.

Of the projects, only 12 amounting to USD 355.69 million, which is almost 45 per cent of the total value, have been implemented in the last nine years.

According to Article-1 of the draft agreement, the Bangladesh government has permitted the Exim Bank’s representative office in Dhaka to liaison and coordinate with the Economic Relations Divisions (ERD), whenever required, and it may also contact other ministries/divisions/agencies of the Bangladesh government for speedy untilisation of the dollar credit lines committed by the Indian government as a development partner of the Bangladesh government.

Article-2 of the draft agreement says: “The Bangladesh government shall support Exim bank representative and staff dispatches of LOC to discharge the duties in connection with the bank representatives which inter-alia, include: monitoring of ongoing projects under the LOCs to the borrower; undertaking periodic site visits and appraising concerned authorities about critical issues in projects; attending meeting convened by ERD/project authorities and resolving issues related to the credit and projects financed there under."

“The Exim Bank representative office shall not undertake any banking, lending or borrowing and trading activities in Bangladesh. The Exim Bank representative office shall not have any revenue generating activities in Bangladesh and its entire expenditure shall be met by foreign exchange remittance from Exim bank’s head office,” Article-3 of the draft agreement states.

“The representatives and their families, as well as the office, would be able to import goods free of duties, taxes and other charges of a similar nature,” Article-6 of the draft agreement mentions.

“For smooth operation of the Exim Bank representative office, it may avail services of local staff in a manner and numbers as suitable to its activities. However, such local staff will not enjoy the privileges, benefits, exemptions as specified,” Article-9 of the draft says.

“The initial period of the agreement would be five years, and it shall be automatically extended for such period exchange of letters as the parties agreed,” Article-11 of the draft says.

 

 

Indian Exim Bank to open office in Dhaka

The Exim bank of India is going to set up a representative office in Dhaka soon to monitor the ongoing projects implemented under three different lines of credit (LOCs), government sources said. In this context, an agreement on Concerning Implementation of the LOCs Committed by India to Bangladesh is likely to be signed between Dhaka and New Delhi during Prime Minister Sheikh Hasinas India tour on October 36. According to sources, 47 projects amounting to USD 1,231.95 million under the three LOCs have been taken up since 2010. Of the projects, only 12 amounting to USD 355.69 million, which is almost 45 per cent of the total value, have been implemented in the last nine years. According to Article-1 of the draft agreement, the Bangladesh government has permitted the Exim Banks representative office in Dhaka to liaison and coordinate with the Economic Relations Divisions (ERD), whenever required, and it may also contact other ministries/divisions/agencies of the Bangladesh government for speedy untilisation of the dollar credit lines committed by the Indian government as a development partner of the Bangladesh government. Article-2 of the draft agreement says: The Bangladesh government shall support Exim bank representative and staff dispatches of LOC to discharge the duties in connection with the bank representatives which inter-alia, include: monitoring of ongoing projects under the LOCs to the borrower; undertaking periodic site visits and appraising concerned authorities about critical issues in projects; attending meeting convened by ERD/project authorities and resolving issues related to the credit and projects financed there under. The Exim Bank representative office shall not undertake any banking, lending or borrowing and trading activities in Bangladesh. The Exim Bank representative office shall not have any revenue generating activities in Bangladesh and its entire expenditure shall be met by foreign exchange remittance from Exim banks head office, Article-3 of the draft agreement states. The representatives and their families, as well as the office, would be able to import goods free of duties, taxes and other charges of a similar nature, Article-6 of the draft agreement mentions. For smooth operation of the Exim Bank representative office, it may avail services of local staff in a manner and numbers as suitable to its activities. However, such local staff will not enjoy the privileges, benefits, exemptions as specified, Article-9 of the draft says. The initial period of the agreement would be five years, and it shall be automatically extended for such period exchange of letters as the parties agreed, Article-11 of the draft says.