Exim Bank to provide $87 mn credit line to Zimbabwe

Exim Bank to provide $87 mn credit line to Zimbabwe

30/09/2016 11:50

Government will provide a line of credit of USD 87 million to Zimbabwe through Exim Bank, reported PTI.

Export-Import Bank of India (Exim Bank) had entered into an agreement on October 27, 2015 with the Government of Zimbabwe for USD 87 million soft loan for financing renovation and up-gradation of Bulawayo Thermal Power Plant.

“Subsequently, Exim Bank has signed first Amendatory Dollar Credit Line Agreement with the Government of Zimbabwe on May 31, 2016 on account of the revision of the Guidelines on Lines of Credit extended by Government of India to various countries under its Indian Development and Economic Assistance Scheme (IDEAS) dated December 7, 2015,” RBI said.

Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price will be be supplied by the seller from India and the remaining 25 per cent may be procured from outside India.

The credit agreement under the LOC is effective from August 19, 2016, RBI said.

Under the LOC, last date for opening letters of credit disbursement is 60 months after the scheduled completion date of the project.

In a line of credit loan, interest is not usually charged on the credit that is unused. Also, the borrower can draw on the line of credit at any time.

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.