Bangladesh National Party opposes govt decision to sign loan deal with India

With India and Bangladesh set to ink a USD one billion credit facility agreement for infrastructure projects in this country, main opposition BNP has accused the government of premier Sheikh Hasina of striking an "unfair deal."

Finance minister Pranab Mukherjee is to witness the signing of the deal, under which $1 billion credit facility is being extended by Exim Bank to Bangladesh, during his day-long visit today.

"The government is getting the loan from the Indian bank with an interest rate seven times higher than that from any multinational bank or donor agency," BNP said in a statement, adding the deal for infrastructure projects would eventually benefit India while Bangladeshis would have to repay the loan.

BNP standing committee member MK Anwar, MP, who read out the statement late last night, said Bangladesh would incur a net loss of Taka 40,000 crore (Rs 26,452 crore) for the deal and warned that their party would stage street protests if the government signed "an unfair" accord "like this."

"The implementation of the projects with the Indian loan would serve Indian interests more than Bangladesh's," he said.

Officials earlier said it was the highest amount of credit Bangladesh ever lent under a single deal, while New Delhi offered it in line with an agreement reached between prime minister Sheikh Hasina and her counterpart Manmohan Singh during her India trip in January this year.

India's Exim Bank will sign the $1 billion Line of Credit agreement with Bangladesh's Economic Relations Division and the amount would be used for projects mostly related to development of railways and other communication infrastructure in Bangladesh, particularly to facilitate transshipment of Indian goods to its northeastern region through Bangladesh.

BNP chief Khaleda Zia earlier said her party too wanted good relations with New Delhi, when newly-appointed Indian high commissioner Rajeet Mitter called on her in February.

At that time, Bangladesh's relations with India appeared to be at the centre-stage of BNP politics, with the opposition alleging that Hasina "sold out" the country by signing three agreements and two protocols during her New Delhi tour.

Zia also feared that her arch-rival also reached what she claimed a "secret deal" during her New Delhi visit.

Hasina dismissed BNP allegations, saying "the question of signing any secret deal doesn't arise at all (and) if the opposition knows anything about it, let them make it public."

Hasina earlier defended the deals saying the agreements paved the way for enhanced  bilateral and regional cooperation to fight "poverty, our common enemy".

"Opposing India is nothing new in Bangladesh... It became a habit of some people and we have nothing to do about it," she had said.