Billion dollar loan
In his letter of August 16 Mr. Ali wrote that the billion dollar loan provided by India's Exim Bank is on the key condition that 85% of all commodities purchased through the loan money will have to be from India. This means that 85% of the billion dollar, i.e. 850 million dollars, will go back to India. I quote from the letter "Repayment of a billion dollar loan will severely deplete our foreign reserves. Bangladesh could've spent the billion dollars internally to develop its infrastructure, which would have positive effects on the local economy, instead of spending 850 million dollars in India." If it is so, I must say that by this so called loan of friendship, India is simply strengthening its market in Bangladesh.
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