Exim Bank extends its 2nd largest credit of $1-bn to Mongolia

Exim Bank extends its 2nd largest credit of $1-bn to Mongolia

04/05/2016 00:33

The Exim Bank has extended a line of credit (LoC) worth USD 1 billion to Mongolia for developing its railways and related infrastructure, reported PTI.

This is the second largest Exim Bank credit line to any country, the Bank said in a statement here today, adding the agreement was signed on April 28.

With this, the Exim Bank has so far extended two LoCs to Mongolia, on behalf of the Centre, taking the total value of LoCs to USD 1.02 billion.

The first LoC of USD 20 million was extended in July 2011 for financing the India-Mongolia joint information technology education & outsourcing center project in Mongolia.

With this LoC, the Exim Bank has in place 204 LoCs covering 63 countries in Africa, Asia, Latin America, the Oceania and the CIS, totalling credit commitments of over USD 15.28 billion, available for financing exports from the country.

Under these LoCs, Exim Bank will reimburse 100 per cent of the contract value to the Indian exporters, upfront on the shipment of equipment and goods/ provision of services.

Exim Bank’s LoCs afford a risk-free, non-recourse export financing option to domestic exporters.

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