Exim bank extends 200th Line of Credit to finance exports to developing countries

The Export-Import Bank of India (Exim Bank) has extended a Line of Credit (LOC) of US $24 million to the Government of the Republic of Côte d'Ivoire, for financing electricity interconnection project between Cote d'Ivoire and Mali.

The LOC was the 200th such agreement provided by Exim Bank on behalf of the Government of India to promote bilateral relations and economic partnership between countries.

According to an official statement, the current agreement was the fifth LOC with a cumulative size of $136.3 million to be extended by Exim Bank to the Republic of Cote d'Ivoire. The first LOC of $26.8 million was extended in August 2005 for financing renewal of urban transport system in Abidjan and for agricultural projects. The second LOC of $25.5 million was extended in June 2008 for financing a Mahatma Gandhi IT and Biotechnology Park, a fisheries processing plant and a coconut fibre processing plant in that country. The third LOC of $30 million was extended in December 2009 for financing transmission line project between Cote d'Ivoire and Mali. The fourth LOC of $30 million was extended in March 2010 for financing rice production programme. Republic of Cote d'Ivoire is a West African country bordered by Liberia and Guinea in the west, Mali and Burkina Faso in the north, Ghana in the east, and the Gulf of Guinea (Atlantic Ocean) in the south.

With the signing of this LOC Agreement, Exim Bank has now in place 200 Lines of Credit, covering 63 countries in Africa, Asia, Latin America, Oceania and the CIS, with credit commitments of over $12.22 billion, available for financing exports from India. Under the LOCs, Exim Bank will reimburse 100 per cent of contract value to the Indian exporters, upfront upon the shipment of goods/provision of services. Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India's exports, Exim Bank's LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets, the statement said.